Brent crude oil had been in a sliding mode since Tuesday, while yesterday, it fell below the upside support line drawn from the low of March 23rd. However, the liquid hit support at 64.60 today, and then it rebounded to test that line from underneath. Bearing in mind that the price continues to trade below that line, we would consider the short-term outlook to be cautiously bearish.
If the bears are willing to take charge again from near that prior upside line, we may see them diving for another test near the 64.60 zone, where a break would confirm a forthcoming lower low and perhaps carry larger bearish implications. We may then experience extensions towards the 62.50 area, which is defined as a support by the low of April 12th.
Shifting attention to our short-term oscillators, we see that the RSI rebounded from near its 30 line, while the MACD, although below both its zero and trigger lines, shows signs of bottoming. Both indicators confirm the latest slowdown in the negative momentum and make us cautious that some further recovery may be looming before the next leg south, even slightly above the aforementioned upside line.
However, in order to start examining whether the bulls have regained control, we would like to see the recovery extending above 67.25, marked by yesterday’s high. If so, the bulls may get encouraged to drive the action towards the 69.00 zone, marked by an intraday swing high formed on Tuesday, the break of which could set the stage for extensions towards the 70.30 area, which acted as a strong resistance on May 5th and 18th.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.05% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.