(Z20): Reversal Conditions Hold

• RES 4: $45.04 - High Sep 4
• RES 3: $44.30 - High Sep 18 and key resistance
• RES 2: $43.07 - High Sep 23
• RES 1: $42.17 - 20-day EMA
• PRICE: $42.04 @ 06:36 BST Oct 7
• SUP 1: $41.22 - Low Oct 5
• SUP 2: $38.79 - Low Oct 2 and the bear trigger
• SUP 3: $38.59 - Low Jun 15
• SUP 4: $38.25 - Low Jun 12 and a key support

A sharp rally Monday in Brent futures signals a reversal of the downtrend that has dominated most recently since Sep 18. Yesterday's gains reinforce this likelihood. A reversal pattern defines Monday's price action, a bullish engulfing candle line. This suggests a base has developed at $38.79, Friday's low and if correct, signals scope for recovery towards $43.07, Sep 23 high. On the downside, a break of $38.79 would reinstate a bearish theme.