28, July 2016

Brent (a 4-hour chart)

Brent (a 4-hour chart)

General overview

The Brent remained under pressure amid oversupply and weak demand. Moreover, the Brent decreased on the back of the crude oil inventories growth. The inventories have grown the first time in 10 weeks.

Current situation

Bears have the ball and control the market now. The instrument had a sharp drop below the support level of 44.00. The Brent lost about 2.95% during the course of the day. The resistance is at 44.00, the support comes in at 42.80 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 price grew to the 50-EMA and bounced downwards from it in the 1 hour chart. The moving averages (50, 100 and 200) are trending downwards in the 4 hours chart.

Trading recommendations

The more oil falls the more attractive it becomes for buying. The price may extend its decrease towards the 42.00 region.