Brent futures recoup losses after losing more than 13%

Brent crude oil lost more than 13% in the preceding three trading sessions, recording a fresh 15-month low of 71.66. Currently, the market is rising slightly but the tendency is bearish after the break below 75.60. The RSI indicator is moving sideways near the oversold region, while the MACD is extending its negative structure beneath its trigger and zero lines. 

Should prices decline, immediate support could be found around the 69.30 barrier, taken from the lows in November 2021, confirming the medium-term bearish move. Then a leg below that level, could hit the 65.30 line, achieved in November 2021 as well.

However, if the market manages to pick up speed, the immediate inside swing lows at 75.60 and 77.75 could offer nearby resistance ahead of the 80.27 mark. A significant close above the latter could meet the 20- and the 50-day simple moving averages (SMAs) at 81.90 and 83.30 respectively.

In the medium-term, the outlook shifted to negative and only a climb back above the short-term SMAs may change the bias to neutral again.

About the author

Melina Deltas

Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups. Her technically focused method looks mainly at price action across multiple time frames to capture big moves that develop over the years. She has more than 3 years of experience in analyzing financial markets, specializing in forex, indices, and commodities. Melina studied Pure Mathematics at Lancaster University and has a Master's Degree in Monetary and Financial Economics from the University of Cyprus. Currently, she is an associate member of the Society of Technical Analysts (STA) and a Certified Financial Technician (CFTe).