Brent (a 4-hour chart)
The crude oil futures continued to recover due to the reduction of oil reserves in the United States. At the same time the dollar fell when the market reduced its expectations that the Fed would hike the rate in 2016. The decline of the dollar also contributed to the demand for the Brent.
The oil quotations continued its recovery and gained about 3.29% during the day. The price is trying to return to the upward channel. The Brent approached the 50.50 – 51.00 region where it fell down a week ago. The resistance is at 50.50, the support is at 49.50.
MACD moved into the positive area, its histogram grew, that is a buy signal. RSI kept growing after bouncing from the oversold area. Shall RSI move upwards the Brent futures will grow. The Moving Averages (50, 100 and 200) formed a cross-over on the 4 hour chart. The price broke all of them; the 100-day moving average is a support for the futures now. The price bounced from the 50-day moving on the daily chart.
We advise to consider long positions with the first target – 50.50. After fixing above the first target, the level 51.50 will become the next one.