Brent's recovery rally from the Nov. 29 low of $57.33 is struggling to move past the resistance of the 4-hour chart 100-SMA, possibly due to caution ahead of the meeting between OPEC and other major oil producers to discuss supply cuts.
Oil prices have dropped 30 percent from the four-year highs seen in October. That sharp sell-off has prompted OPEC to consider cutting production levels. Oman Oil Minister Mohammed Al Rumhi told reporters that participants in a Wednesday technical meeting, including Russia, “recommended there is a need for reductions.”
As a result, the meeting between the major producers, scheduled today, is likely to produce some type of agreement on decreasing output.
4-hour chart
-636796581182428103.png)
As seen above, oil is trapped between the 50-candle MA and 100-candle MA. Notably, oil has failed twice in the last two days to penetrate the 100-candle MA hurdle, now located at $62.84. A convincing break above that level would signal a continuation of the recovery rally.
Daily chart
-636796581456983204.png)
The bullish divergence of the relative strength index (RSI) on the daily chart indicates the sell-off from 4-year highs likely ended at $57.33. Further, the 5- and 10-day MAs have produced a bullish crossover. So, oil is more likely to find acceptance above the 4-hour chart 100-candle MA of $62.84. The prospects of a bull breakout above that level would drop if prices fall back below $60.00.
At press time, Brent is changing hands at $61.48 per barrel.
Trend: Neutral-to-bullish
Brent Oil
Overview:
Today Last Price: 61.44
Today Daily change: -7.0 pips
Today Daily change %: -0.114%
Today Daily Open: 61.51
Trends:
Previous Daily SMA20: 62.41
Previous Daily SMA50: 70.91
Previous Daily SMA100: 74.48
Previous Daily SMA200: 74.93
Levels:
Previous Daily High: 63.32
Previous Daily Low: 60.78
Previous Weekly High: 61.5
Previous Weekly Low: 57.48
Previous Monthly High: 74.94
Previous Monthly Low: 57.48
Previous Daily Fibonacci 38.2%: 62.35
Previous Daily Fibonacci 61.8%: 61.75
Previous Daily Pivot Point S1: 60.42
Previous Daily Pivot Point S2: 59.33
Previous Daily Pivot Point S3: 57.88
Previous Daily Pivot Point R1: 62.96
Previous Daily Pivot Point R2: 64.41
Previous Daily Pivot Point R3: 65.5
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