Brent (a 4-hour chart)
Oil prices hold onto gains despite the U.S. crude inventories increase.
Oil prices retreated from 2 week high on Wednesday. The benchmark met a barrier around 47.50 where buyers lost strength and turned around. Traders pushed Brent futures down and tested 46.50 dollars per barrel in the mid-Europe trades. The ongoing weakening could be attributed to some profit taking from bull following two day rally. Brent oil prices bounced from the 100-EMA and moved lower. The price is sandwiched between the 50 and 100 EMAs in the 4 hours chart. The moving averages direction is downwards. The resistance is at 47.50, the support comes in at 46.50 dollars per barrel. The indicators bounced from oversold level. MACD decreased which indicates the buyers’ positions weakening. RSI moved downwards.
Buyers are unable to climb above 47.50 for now. Bears took control over the market and drove prices lower. Should the Brent prices lose ground and advance below 46.50, the decline can extend in the short term to 45.50 first. The second sellers' target lies at 44.50 dollars per barrel.