Brent (a 4-hour chart)
Oil prices rose on Monday amid renewed hopes that OPEC members will agree to freeze oil production at the meeting in Vienna.
Market’s positive mood persisted on Monday. Oil prices gapped higher at the open, prices jumped from 46.84 to 47.26 dollars per barrel. Brent continued strengthening after the gap and broke 47.50 in mid-Europe. After breaking the level crude oil price extended its gains towards 48.50. The benchmark bounced upwards from the 100-EMA during the European hours. After breaking the moving the price advanced towards the 200-EMA. The 50-EMA is turning upwards while the 100 and 200 EMAs kept heading lower. The resistance is at 48.50, the support comes in at 47.50 dollars per barrel.
The MACD histogram grew which indicates buyers’ strength. RSI oscillator stayed near overbought levels, favoring a new move higher.
A strong breakdown and close above 47.50 could send prices higher towards 48.50. However, Brent is overbought and we do not exclude a large correction towards 45.50.