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(F3) Bear Cycle Extends

BRENT TECHS
  • RES 4: $102.28 - High Jul 5
  • RES 3: $100.10 - High Jul 29
  • RES 2: $96.95/99.56 - High Nov 14 / 7 and the bull trigger
  • RES 1: $93.33 - 20-day EMA
  • PRICE: $90.14 @ 06:56 GMT Nov 18
  • SUP 1: $89.53 - Low Nov 17
  • SUP 2: $87.52 - Low Oct 18 and bear trigger
  • SUP 3: $83.38 - Low Sep 30
  • SUP 4: $80.94 - Low Sep 26 and key medium-term support

Brent futures traded lower Thursday, marking an extension of the bear leg that started Nov 7. Recent bearish candlestick patterns (an engulfing pattern on Nov 8) provided an early reversal signal and this week’s break of support at $91.73, the Nov 10 low, reinforces a bearish theme. This signals scope for weakness towards $87.52, the Oct 18 low and a key support. Initial resistance is at $93.33, the 20-day EMA.

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