Brent futures return up but find obstacle at 40-SMA

Brent crude oil futures has gained a little extra this week to jump above the 20-period simple moving average (SMA) and re-challenge the 40-SMA. The technical indicators are currently feeding prospects for a possible positive short-term trading as the RSI is holding above 50 level, while the MACD continues to strengthen above its trigger line. However, the stochastic oscillator is flagging overbought conditions, as it fluctuates above 80 with a softer positive slope.

A failure to overcome the 62.80 resistance, could send the price down to the 20-SMA currently at 61.40 in the 4-hour chart. Lower, support could be next found around 60.20, while a decisive close below it could stage a steeper sell-off until 59.40.

Alternatively, if 62.80 and the 23.6% Fibonacci of the downward wave from 75.60 to 59.40, near 63.22, proves easy to get through, the spotlight will turn to the 38.2% Fibonacci of 65.60 and the 65.90 resistance area.

Summarizing, the oil market seems to be neutral in the very short-term (over the last week), with the technical indicators suggesting more bullish actions.