27, July 2016

Brent (a 4-hour chart)

Brent (a 4-hour chart)

General overview

The Brent decreased as traders are worried that ongoing oversupply will drag the price lower.

Current situation

Sellers took control of the flows, the Brent closed bearish yesterday. The sellers managed to lead the quotes from 44.90 to 44.15 dollars per barrel where the trading instrument found a support around 44.00. The resistance is at 45.30, the support comes in at 44.00 dollars per barrel.

Indicators generate a sell signal. MACD indicator is in the negative area. MACD decreased which indicates the sellers’ positions strengthening. RSI approached the undervalued area which is another sell signal.

The moving averages (50, 100 and 200) are trending downwards in the 4 hours chart.

Trading recommendations

The upward bounce potential targets are 45.30, 46.50. If the price falls it will get to 44.00 dollars per barrel.