BRENT CRUDE OIL - Brent Crude Oil Retesting $46.20 - 08/12/2016 (GMT)

Brent Crude Oil jumped nearly 5.8% at $46.80 per barrel as the Saudi oil minister stated that at the end of September OPEC meeting, they will discuss the market situation and any action needed to stabilize the prices. Moreover, the International Energy Agency forecasted that crude oil markets would rebalance in the next few months. The comments also bolstered the WTI Crude oil that lifted more than 5.5% at $44.60 per barrel. The technical structure suggests more bullish movement for both Brent and WTI Crude oil. The aggressive rally for both of them was started from the rebound on the $43.60 and $41.70 respectively.

The Brent Crude oil is currently trading above the 200-SMA on the 4-hour chart which remains with a more upside potential move if there is a successful penetration of the fresh almost one-month high. After the strong movement, there is also a possibility of retesting the support level at $46.20 and then continuation of the upward move until the $48.00 psychological resistance barrier. Technical indicators on the 4-hour chart are biased higher and corrected extreme overbought readings. The MACD oscillator is currently moving above both, its zero and trigger lines, increasing the probabilities for further advance while the RSI indicator is moving near the 70 level.