23, June 2016

Brent (a 4-hour chart)

Brent (a 4-hour chart)

General overview

The Brent oil futures rose after a weak Weekly Crude Oil Stock report. Nevertheless, the less the Brent quotations decreased by the end of the day. The UK referendum is still the focus of the market attention.

Current situation

The oil quotations weakened yesterday. The quotes fell from 51.23 to the level 49.50. The resistance is at 50.50, the support is at 49.50.

MACD moved into the positive area. The histogram decreased that confirmed the current drop of the quotes. RSI decreased from the overbought level of 70. If RSI remains falling that will be a sell signal. The Brent broke the 100-SMA and stopped at the 50-SMA.

Trading recommendations

The buyers need to break above 50.50 for a steady growth. The way to the marks 51.50 and 52.50 will be opened after this breakthrough. If the price falls it will get to 49.50 and 48.50.