Brent: Risks are on the upside - Natixis

As the daily stochastic of brent crude is overbought, Micaella Feldstein, Research Analyst at Natixis, see some corrective decline in the ST towards a support at 51.35-51.50 (9-day moving average) and to 50.50.

Key Quotes

“These dips should enable the Brent to take a breather ahead of a  new leg higher.”

“Indeed risks are on the upside with the emergence of upside parallels on the daily chart and bullish weekly indicators. We then expect another test of 54.80-55 (weekly Bollinger upper band) strong obstacles ahead of 57.20 (rising trendline), 60.70 and 63.20 (monthly Bollinger upper band).” 

“The supports stand at 51.35-51.50, at 50.50, at 48.90, at 47.30 and at 44.60.”