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(G4) Short-Term Gains Considered Corrective

BRENT TECHS
  • RES 4: $88.55 - High Oct 27
  • RES 3: $87.12 - High Nov 3
  • RES 2: $84.61 - High Nov 30 and key short-term resistance
  • RES 1: $79.36/81.95 - 20- and 50-day EMA
  • PRICE: $76.47 @ 06:59 GMT Dec 11
  • SUP 1: $73.50 - Low Jul 6
  • SUP 2: $71.45 - Low Jun 23
  • SUP 3: $69.86 - Low May 4 and a key support
  • SUP 4: $66.90 - 1.236 proj of the Oct 20 - Nov 16 - 30 price swing

A sharp sell-off in Brent futures last week reinforced a bearish theme. The contract cleared support at $76.71, the Nov 16 low. This confirmed a resumption of the downtrend and marks an extension of the price sequence of lower lows and lower high. Price has traded through the $75.00 handle and sights are set on $73.50, the Jul 6 low. Initial firm resistance is seen at $79.36, the 20-day EMA. Gains are considered corrective.

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