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Technical Analysis: Brent breaks seven-week-old trend line to high June lows for oil bears

Despite staying above a falling trend line from September 08 the previous day, Brent oil prices recently conquered the key support line to confirm near-term bearish momentum. However, oversold RSI conditions can probe the bears around a horizontal area between $36.30 and $36.45, comprising lows marked during June. While the late-May tops near $36.15 and the $36.00 round-figure may probe sellers past-$36.45, any further downside will not refrain from challenging the May 22 low around $32.45/40.

If at all Friday's daily closing repeats the previous day's move and close beyond the $37.50 trend line level, 23.6% Fibonacci retracement level near $38.80 and the $40.00 psychological magnet can probe the energy bulls. Should there be a clear upside past-$40.00, which becomes less likely, 200-day SMA surrounding $40.15 and a resistance line from August 31, at $42.48 now, will be the tough nuts to crack for the bulls.

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