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13 Mar 2015
Brent: a breach $45/$42 could open the door to $25/$20 – RBS
FXStreet (Edinburgh) - According to Dmytro Bondar, Technical Analyst at RBS, the barrel of Brent crude could drop as low as the area of $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 re-test the $45/42 support, which once broken may 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 re-test the $45/42 support, which once broken may see further weakness towards $25/20”.