21, June 2016

Brent (a 4-hour chart)

Brent (a 4-hour chart)

General overview

The oil quotes rose on Monday when concerns that Britain would leave the European Union decreased. The weak dollar also supported the Brent quotes.

Current situation

The oil quotations kept growing. The price left the descending channel. The Brent was able to recover to 50.50. The resistance is at 50.50, the support is at 49.50.

MACD moved into the positive area. The histogram grew that confirmed the current growth of the quotes. RSI approached the overbought level of 70. If RSI gets into the overbought area we will get a buy signal. The Brent broke all Moving Averages (50, 100 and 200). If the oil consolidates above them the buyers will become stronger.

Trading recommendations

We believe the growth will be continued. The level 50.50 limits the growth of the Brent. A break above this mark risks a growth back towards the resistance at 51.50.