19, July 2016

Brent (a 4-hour chart)

Brent (a 4-hour chart)

General overview

The Brent went back and forth on Monday fluctuating in a narrow range amid drilling activity growth in the USA. Moreover, investors are digesting the news regarding a failed coup in Turkey.

Current situation

The overall outlook remains bearish. The Brent is in a descending channel, hovering at the support 46.50. The Brent showed negative dynamic yesterday when the instrument dropped back below 47.50. The resistance is at 47.50, the support comes in at 46.50.

MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. RSI is in the neutral territory.

The price broke the 50-EMA downwards. The moving averages (50, 100 and 200) are moving downwards in the 4 hours chart.

Trading recommendations

If the instrument grows its next stop could well be at 47.50 region. If the price breaks above this region, then this could lead to renewed buying momentum. Alternatively, a break below the current support 46.50 risks a decline towards 45.30.