Trading Central: Brent Bias Still Bearish — Market Talk

September Brent broke below its 50-period moving average and consolidated on the downside, on the 30-minute chart. A new test to its next support at $45.5 seems more likely to occur. The declining 50-period moving average is playing a resistance role and maintains the downside bias. The RSI broke below a rising trend line, which emerged on July 6. The MACD is below its 0-level. Additionally, $47.15 (July 6 low) represents a significant key resistance level, which should limit the upside potential. As long as this key level is not broken, look for a further drop towards $45.5 and even $44.9 in extension. Only a break above $47.15 would turn the outlook to positive with an up target at $47.9. September Brent is trading at $46.75 a barrel.

This piece contains the opinions of Trading Central and does not constitute personalized investment advice or form part of any invitation or inducement to buy or sell any security. The author has been prohibited by Trading Central from purchasing or otherwise directly or indirectly acquiring any direct or indirect beneficial ownership of any instruments or markets for which Trading Central or its affiliates issues recommendations. To read more, visit bit.ly/1MehCU9. (analysts-europe[a]tradingcentral.com)

Copyright (c) 2016 Dow Jones & Company, Inc.