Brent Oil needs to avoid daily close below $50.27
The monthly classic pivot support 3 located at $50.27 has been successfully defended over the last four trading days.
Despite the fact that the dips below $50.27 were short lived, the subsequent corrective move has failed around $51.00 handle for three trading days including today… that too despite RSI being oversold.
The ADX line is rising as well, pointing to the strength of the down trend.
Hence, a daily close below $50.27 would only signal continuation of the decline and would open doors for $48.25 (Apr, 2016 high).
Take note – On last two occasions, prices staged a solid rebound from around 200-DMA support. The RSI was oversold as well. We have a similar situation … even the position of the ADX is similar to the ones seen in the previous two occasions…
Despite the fact that the dips below $50.27 were short lived, the subsequent corrective move has failed around $51.00 handle for three trading days including today… that too despite RSI being oversold.
The ADX line is rising as well, pointing to the strength of the down trend.
Hence, a daily close below $50.27 would only signal continuation of the decline and would open doors for $48.25 (Apr, 2016 high).
Take note – On last two occasions, prices staged a solid rebound from around 200-DMA support. The RSI was oversold as well. We have a similar situation … even the position of the ADX is similar to the ones seen in the previous two occasions…
