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.
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