Brent Technical Analysis
Brent continues to see a lot of noisy behavior, with the 50-day EMA hanging around, and the $65 level as support. If we break down below the $65 level, then I think you’ve got a very real possibility of dropping down to the $62.25 level, where the gap came. Ultimately, this is the same situation. If we rally from here, Brent could continue towards the 200-day EMA, but it’s definitely going to be difficult.
I think at this point, the market is trying to come to grips with the fact that maybe it overreacted as per usual, and now the adults have come back into the room to at least stabilize things. The situation with supply and demand is still an issue for oil, and it will probably still be for the foreseeable future. So, with all of that being said, I’m looking for an excuse to start shorting.
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