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(G1) Correcting Lower

BRENT TECHS
  • RES 4: $56.32 - 1.382 proj of the Nov 16 - 25 rally from Dec 2 low
  • RES 3: $54.65 - 1.236 proj of the Nov 16 - 25 rally from Dec 2 low
  • RES 2: $53.15 - 1.000 proj of the Nov 16 - 25 rally from Dec 2 low
  • RES 1: $52.48 - High Dec 18 and bull trigger
  • PRICE: $50.63 @ 06:47 GMT Dec 21
  • SUP 1: $49.13 - Low Dec 14
  • SUP 2: $48.99 - 20-day EMA
  • SUP 3: $48.09 - Low Dec 8 and the key support
  • SUP 4: $46.82 - Low Dec 2

Brent futures have started the week on a softer note trading sharply lower off Friday's high of $52.48. Trend conditions are overbought and the sell-off could be the start of a much needed correction. A deeper pullback would suggest scope for weakness towards $48.99, the 20-day EMA. Clearance of this average would signal scope for a deeper pullback. The underlying trend remains bullish though, a break of $52.48 confirms a resumption of the trend.

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