Any jumps in oil are still being swatted back by sellers but the black stuff bulls are still trying to make a fight of it.
The decent consolidation phase lasted 15 days back in December, before the next leg lower happened and we’re currently on day 17 of this one.
The biggest tech level is still the long term support line at 48.50, which we’re holding below right now, and the area between 40 to 36.20. A monthly close below could signal further downside.
Brent crude monthly 20 01 2015
Coming in a but nearer we’ve a minor support line coming into play but a meaningful break is needed to cement a proper low.
Brent crude H1 chart 20 01 2015
Really we need to see the 52 level taken out and then built upon before even thinking about where we go from there. Until then the downside is always going to stay in focus.
While OPEC (and more so the Saudi’s) aren’t worried about these prices, hitting the jumps to 52 is the way to play it. Longs need to keep an eye on the lower levels as if they go then the pain is coming.
