Goldman Sachs technical analysts (from their ‘The Charts That Matter Next Week’) say that ‘oil is still in a well defined downtrend’
They go on:
- Brent would have to reverse back above 87.20 to appear more neutral/near-term stable
- The next big pivot/confluence level is down at 71.42-70.46 where a double top target from Apr. ’11/Mar. ‘12 is near 61.8% of the entire Dec. ‘08/Mar. ‘12 rise.
- Although weekly oscillators are at the lows, they’ve yet to show any sign of a turn higher. From this point of view, it seems the risk/reward is better skewed to the downside