(Z3) Bear Cycle Remains In Play

• 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.