Back
2 Mar 2015
Brent recovery in its last phase? – RBS
FXStreet (Edinburgh) - In the opinion of Dmytro Bondar, Technical Analyst at RBS, the recovery in the Brent prices could be coming to an end in the near term.
Key Quotes
“We hold the same 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 the current recovery may be over amid the 10/3/3 daily slow stochastics having turned negative and price action indicated a high chance of double-top formation (unless $64.00 is broken)”.
“Therefore, I believe the bounce will be limited by the resistance area and the price will re-test the $44.50 support (the level is updated), which once broken would see further weakness towards $25/20”.
Key Quotes
“We hold the same 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 the current recovery may be over amid the 10/3/3 daily slow stochastics having turned negative and price action indicated a high chance of double-top formation (unless $64.00 is broken)”.
“Therefore, I believe the bounce will be limited by the resistance area and the price will re-test the $44.50 support (the level is updated), which once broken would see further weakness towards $25/20”.