Brent (a 4-hour chart)
Oil prices moved lower amid dollar positive tone. Moreover, investors remain cautious ahead of OPEC agreement announcement regarding output cut.
Oil prices turned bearish on Friday. The price retreated from the weekly high and moved below 48.50 approaching the level 47.50 post NY open. The benchmark pushed away from the 50-EMA in the 4 hours chart. The price approached the bullish 50-EMA and tested it in the mid-American session. The 100-EMA is neutral in the same chart. The resistance lies at 48.50, the support comes in at 47.50 dollars per barrel.
MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. The RSI oscillator moved downwards.
As the most probable scenario, we consider further moving downwards towards the level at 47.50. If bears retain control the price will move lower towards 46.50. In order to recover some strength, Brent needs to rise back and hold above 48.50.