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11 Mar 2015
Brent on its way to $45/$42? – RBS
FXStreet (Edinburgh) - In the opinion of Dmytro Bondar, Technical Analyst at RBS, the barrel of Brent crude could be headed towards the area of $42/$45.
Key Quotes
“We hold the view that the oil price recovery is about to end, as the monthly chart displayed a strong resistance layer at $62/64 and daily charts indicated price consolidated in a triangle and stayed there for too long (reaching the apex), which suggests the triangle will become a reversal pattern”.
“Therefore, I believe the bounce will be limited by the $64,87 resistance and the price will retest the $45/42 support, which once broken would see further weakness towards $25/20”.
Key Quotes
“We hold the view that the oil price recovery is about to end, as the monthly chart displayed a strong resistance layer at $62/64 and daily charts indicated price consolidated in a triangle and stayed there for too long (reaching the apex), which suggests the triangle will become a reversal pattern”.
“Therefore, I believe the bounce will be limited by the $64,87 resistance and the price will retest the $45/42 support, which once broken would see further weakness towards $25/20”.