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8 Dec 2015
Brent: $42/bbl is broken; the next targets remain at $35/bbl and $26/bbl - RBS
FXStreet (Delhi) – Dmytro Bondar, Technical Analyst at RBS, suggests that the Brent market broke below 42.00, which was our 2015 year-ahead target and previously limited the sell-off in August.
Key Quotes
“The key theme is being dictated by a long-term bear flag pattern, triggered in the mid-summer of 2015 with key measuring targets of 42.70, 34.40 and 26.08 (with the possibility of extending a dip to 15.79 later in 2016). The first support area of 42.00 is now broken, leaving the market technically exposed to further weakness to 35.00 and 26.00 at least.”
“We do not expect these targets to be reached in a straight line though, due to momentum oscillators entering the oversold area, but we expect the theme for weaker oil prices to continue into the next year.”
Key Quotes
“The key theme is being dictated by a long-term bear flag pattern, triggered in the mid-summer of 2015 with key measuring targets of 42.70, 34.40 and 26.08 (with the possibility of extending a dip to 15.79 later in 2016). The first support area of 42.00 is now broken, leaving the market technically exposed to further weakness to 35.00 and 26.00 at least.”
“We do not expect these targets to be reached in a straight line though, due to momentum oscillators entering the oversold area, but we expect the theme for weaker oil prices to continue into the next year.”