22, September 2016

Brent (a 4-hour chart)

General overview

Brent prices grew following a draw in U.S. crude inventories. Besides, the oil service worker strike in Norway threatens the oil output which supports the current oil prices rally.

Current situation

Oil prices gapped higher at the start of Wednesday. The price immediately jumped from 46.25 to 46.45 dollars per barrel. The crude oil remained close to the level 46.50 during the European trade on Wednesday. The price touched the bearish 50-EMA in the 4 hours chart. The 100-EMA is heading lower, the 200-EMA is moving upwards. The resistance is at 46.50, the support comes in at 45.30 dollars per barrel.

MACD remained within negative territory which confirms the strength of sellers. RSI is approaching oversold area

Trading recommendations

The Brent will mostly depend on the Crude Oil Stocks change report on Wednesday. A further draw in the inventories shall support the prices. Brent may continue its upward trajectory towards 47.50. On the other hand, a growth of inventories may weigh on the price which will fall below 46.50 dollars per barrel towards 45.30.