18, November 2016

Brent (a 4-hour chart)

General overview

Oil prices turned higher on Thursday after Saudi Energy Minister Khalid al-Falih's testimony that he was optimistic over OPEC preliminary oil freeze deal which was reached in September.

Current situation

Brent had a positive day on Thursday. Bulls maintained control extending their near-term upward trajectory. A fresh buying interest around 46.50 pushed the benchmark higher. Oil prices rallied and reached the level 47.50 ahead of the NY session. The benchmark started the day between the 50 and 100 EMAs in the 4 hours chart. Brent futures were able to test the 100-EMA ahead of the New York session. The 50-EMA is neutral while the 100 and 200 EMAs kept moving lower. The resistance is at 47.50, the support comes in at 46.50 dollars per barrel.

The histogram grew which is a buy signal. RSI remained within overbought levels.

Trading recommendations

If Brent futures break 47.50 the level 48.50 may become an attractive target for bulls.