Free Trial

(Z3) Bear Cycle Remains In Play

BRENT TECHS
  • RES 4: $99.73 - 1.236 proj of Jun 23 - Aug 10 - Aug 24 price swing
  • RES 3: $96.22 - 1.00 proj of Jun 23 - Aug 10 - Aug 24 price swing
  • RES 2: $95.35 - High Sep 28 and the bull trigger
  • RES 1: $89.96 - 20-day EMA
  • PRICE: $87.23 @ 15:50 BST Oct 10
  • SUP 1: $83.84 - Low Oct 5
  • SUP 2: $82.80 - 50.0% retracement of the May 4 - Sep 28 bull run
  • SUP 3: $81.33 - Low Aug 24
  • SUP 4: $79.84 - 61.8% retracement of the May 4 - Sep 28 bull run

A sharp sell-off in Brent futures last week stabilised into the Monday close as uncertainty surrounding the Middle-east spilled over into asset markets. Recent weakness has resulted in a break of support around the 50-day EMA - at $87.43. Note too that a short-term trendline support at $88.32, drawn from the Jun 28 low, has also been cleared. This confirms the current bearish cycle and signals scope for a deeper retracement. A continuation would open $82.80, a Fibonacci retracement. Initial firm resistance is at $90.58, the 20-day EMA.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.