Brent oil at 4-week high, rally runs into 50-DMA, bearish 100-DMA & 200-DMA crossover

The sharp rally in Brent oil has run into the 50-DMA hurdle. The moving average is sloping lower, so I wouldn’t want to bet on further gains. Expect sideways to negative action. Also note the bearish 100-DMA & 200-DMA crossover. What’s more important is the fact that the crossover has happened during the sharp rally… so it is more likely to work.

One can initiate short trades with very tight stops. On the downside, $48-$48.27 is a strong support. Fresh longs could be initiated below $48.00 levels.

Daily chartdownload.png

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