Brent Tumbles and Hits Support at 39.10 | Technical Analysis

Brent oil tumbled again on Tuesday, hitting support near the 39.10 territory. Today, the liquid rebounded, but bearing in mind that the price structure remains of lower highs and lower lows since August 31st, we would consider the near-term outlook to still be negative, even if today’s recovery continues for a while more.

As we already noted, the current recovery may continue for a while more, perhaps for Brent to test the 41.45 zone as a resistance this time. That zone is marked as a support by Monday’s low, as well as by the lows of July 10th and 30th. The bears may recharge from near that hurdle and perhaps drive the battle back down for another test near 39.10. If this time that zone is broken, the tumble may continue towards the 36.80 territory, marked by the low of June 12th.

Taking a look at our short-term oscillators, we see that the RSI rebounded from well below 30 and has just poked its nose above that line, while the MACD, although below both its zero and trigger lines, shows signs of bottoming as well.

On the upside, we would like to see a rebound back above 42.85, marked by the last Thursday’s low, before we start examining the liquid’s potential to recover all its recent losses. The first resistance to consider after such a break may be Friday’s peak, at around 44.15, where another break may open the path towards the 44.75 area, which provided support on August 27th. Another move north, above 44.75, may set the stage for extensions towards the 46.00 zone, which stopped the price from moving higher between August 25th and 31st.


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. 84.25% 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 2020 JFD Group Ltd.