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.

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 (analysts-europe[a]

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