Trading Central: Further Brent Downside Expected — Market Talk

October Brent holds on the downside after it has broken below a rising trend line, which emerged on Aug 3, 2016, on the 30-minute chart. A new test to its next support at $43.74 seems more likely to occur. The 20-period moving average crossed below the 50-period one, which maintains the bearish bias. The RSI broke below its 30 level without showing the reversal signal. The MACD crossed below the signal line as well as the 0-level. As long as $45.05 holds on the upside, look for a drop towards $43.74. A break below this level would call for a further downside towards $43.20. Only a break above $45.05 would turn the outlook to positive with an up target at $45.75. October Brent is trading at $44.36 a barrel.

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