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12 Mar 2015
Brent gains limited around $62/$64 – RBS
FXStreet (Edinburgh) - Technical Analyst at RBS Dmytro Bondar noted that the upside in the crude oil Brent could be capped around the $62/$64 band.
Key Quotes
“We hold the view that the oil price recovery is about to end, as the monthly chart displayed a strong resistance layer at $62/64 and daily charts indicated price consolidated in a triangle and stayed there for too long (reaching the apex), which suggests the triangle will become a reversal pattern”.
“Therefore, I believe the bounce will be limited by the $64,87 resistance and the price will retest the $45/42 support, which once broken would see further weakness towards $25/20”.
Key Quotes
“We hold the view that the oil price recovery is about to end, as the monthly chart displayed a strong resistance layer at $62/64 and daily charts indicated price consolidated in a triangle and stayed there for too long (reaching the apex), which suggests the triangle will become a reversal pattern”.
“Therefore, I believe the bounce will be limited by the $64,87 resistance and the price will retest the $45/42 support, which once broken would see further weakness towards $25/20”.