29, June 2016

Brent (a 4-hour chart)

Brent (a 4-hour chart)

General overview

The oil prices strengthened after falling to a seven-week low after the decision of London to leave the EU. The news that the Norway oil company stands before a strike supported the oil quotes yesterday.

Current situation

The oil quotations continued its recovery on Tuesday. The price met the resistance at 48.50 where the futures decreased back to the mark of 47.50. However buyers did not despair and started a new growth attack. The resistance is at 48.50, the support is at 47.50.

MACD is in the negative area, its histogram moved north, that is a buy signal. RSI left the oversold area. Shall RSI move upwards the Brent futures will grow. The Moving Averages (50, 100 and 200) are above the price. The 200-day moving average is moving upwards, the 50-day and 100-day moving averages direction is down.

Trading recommendations

The Brent is in a green zone. An uptrend will start as soon as the pair rises above 49.50. In the alternative scenario the pair drops below 47.50 to the support at 46.50.