Brent Technical Analysis
Brent now looks like it is testing the $65 level here. If we break down below here, we could get a drop to the $62.50 level. Short-term rallies continue to be sold into, as we’ve seen earlier during the session. Quite frankly, as we have rolled over into the latest contract and in this market, it is the December contract, we just are starting to roll over and show signs of economic weakness. Maybe part of it is a lack of travel, I don’t know, but really oversupply coming out of Russia, OPEC, and the United States, does not help crude oil pricing either.
So, with that being said, if we can break back above the top of the candlestick that we’re forming right now during the session, then maybe we re-enter this consolidation. But if we break down below $65 and more specifically below $64.33, I think the bottom falls out.
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