Brent (a 4-hour chart)
Traders focused on the weekly report on U.S stockpiles of crude and refined products. Better-than-expected U.S. Consumer Confidence index supported the dollar and weighed on Brent futures.
Brent showed low volatile trades during Asian and European sessions on Tuesday. The instrument became active in the American session where the price had a sharp drop from the resistance 49.50 to the support at 48.50. The resistance is at 48.50, the support comes in at 47.50 dollars per barrel.
MACD decreased which confirms the strength of sellers. RSI advanced to the oversold area.
Brent futures bounced from the 50-EMA and approached the 100-EMA in the 4 hours chart. The 50-EMA is neutral, the 100 and 200 EMAs are pointing upwards. The moving averages do not give a clear signal.
We are bearish on the Brent. All eyes are right now at the support level 48.50. If Brent break the level, the price may fall to the 47.50 level.