22, June 2016

Brent (a 4-hour chart)

Brent (a 4-hour chart)

General overview

Weekly Crude Oil Stock in the USA showed -1,900M. According to Secretary General of OPEC the volume of the oil production is growing in Nigeria.

Current situation

The oil quotations returned to a growth. The price has been growing three days in a line. The Brent left the descending channel far behind. The resistance is at 51.50, the support is at 50.50.

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. A break above 50.50 risks a growth towards the resistance at 51.50.