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(G1) Corrective Cycle Extends

BRENT TECHS
  • RES 4: $54.65 - 1.236 proj of the Nov 16 - 25 rally from Dec 2 low
  • RES 3: $53.15 - 1.000 proj of the Nov 16 - 25 rally from Dec 2 low
  • RES 2: $52.48 - High Dec 18 and bull trigger
  • RES 1: $50.86 - High Dec 22
  • PRICE: $49.33 @ 06:45 GMT Dec 23
  • SUP 1: $49.26/20 - 20-day EMA / Low Dec 21 and intraday low
  • SUP 2: $48.09 - Low Dec 8 and the key support
  • SUP 3: $46.83/82 - 50-day EMA / Low Dec 2
  • SUP 4: $45.51 - High Nov 11

Brent futures 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 signal scope for weakness towards $49.18, the 20-day EMA. Clearance of this average would allow for a deeper pullback and open $48.09, Aug 12 low. Key resistance is $52.48, a break confirms a resumption of the trend.

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