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10 Apr 2015
Downside pressure persists around Brent crude – RBS
FXStreet (Edinburgh) - According to Dmytro Bondar, Technical Analyst at RBS, the barrel of Brent crude could test the area of $42.00.
Key Quotes
“The price has formed a flag pattern on the monthly chart, indicating there may be continued downside pressure with the next support levels at $42, then $25 and $14”.
“It is worth noting that the oversold 10/3/3 stochastics, which started to turn bullish, is a false signal in a trending market and hence should be ignored”.
“As a rule, oscillators are used for sideways moving markets, whereas moving averages are most helpful in identifying trends”.
“Overall, the near term is still characterized by a range of $50 – $64, whereas the long-term view remains intact: I believe that spikes will remain capped by $65 and the price will re-test the $45/42 support with latter breakout opening $25 and $14 amid monthly bear flag”.
Key Quotes
“The price has formed a flag pattern on the monthly chart, indicating there may be continued downside pressure with the next support levels at $42, then $25 and $14”.
“It is worth noting that the oversold 10/3/3 stochastics, which started to turn bullish, is a false signal in a trending market and hence should be ignored”.
“As a rule, oscillators are used for sideways moving markets, whereas moving averages are most helpful in identifying trends”.
“Overall, the near term is still characterized by a range of $50 – $64, whereas the long-term view remains intact: I believe that spikes will remain capped by $65 and the price will re-test the $45/42 support with latter breakout opening $25 and $14 amid monthly bear flag”.