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Brent Crude Oil – More downside expected

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The Brent Crude Oil has been trading in a more negative manner over the last few weeks as on Tuesday we saw the commodity recording a new low at $82.04 a barrel. The daily chart shows that the Crude oil has seen significant downside over the recent months, despite numerous failed attempts in the last couple of weeks to change the bias in the market. The sellers managed to maintain the commodity below the key resistance level of $88.06 and more recently they managed to push the price further down below the $83.00 level, as seen on the provided daily chart.

With the above in mind, I would expect the selling pressure to continue and the bears to push the price further down and towards the psychological level of $80.00. If the negative momentum continues and Brent Crude oil violates the $80.00 barrier, it should challenge the next support at $78.00, a strong technical level.

Both of our oscillators favor further downward movement, since the MACD is trying to cross below its trigger line as it remains in a bearish territory, while the RSI fell back below 30, showing indications that cannot overcome the 50 line, supporting the whole downtrend. Furthermore, the 50-period SMA remains below the 200-period SMA indicating that the downtrend remains in effect.

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