Oil: Focus on technical analysis of Brent - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that the emergence of downside parallels on the daily chart and the erosion of an important technical threshold at 48 (weekly Bollinger moving average) underpinned bearish momentum for the brent.

Key Quotes

“Against this backdrop, another test of the supports at 44.80-45 (weekly parabolic) sounds likely in the coming days.

We’ll be vigilant as Brent needs to stay above these last supports to keep the MT outlooks higher back to 53 area and avoid a drop to 43, (weekly Bollinger lower band), to 41.40 and the 40 symbolic threshold.

The resistances are at 48, at 48.70, at 51.30 and at 52.90-53.10.”