Brent Crude Oil Into Overbought Territory, Support 107.65
CommodityOnline | Nov 20, 2013 12:53AM ET
Brent Crude bottomed exactly at our buying opportunity of 107.65/55 & this trade worked perfectly as we returned to resistance at 108.45/55. We struggled here as expected with the short term outlook quite negative & below 108.00 look likely to retest good support at 107.65/55 today.
However there is a greater chance of a break lower so any longs need stops below 107.10. Go with a break lower & look for the next support at 106.75/65 for a buying opportunity, with stops below 106.40. 108.45/55 could hold a move higher with the outlook quite negative but above 108.95 could test the 100 day moving average at 109.25/30 for a selling opportunity with stops above 109.50. Go with a break higher for a selling opportunity at 110.00/10.
Weekly Outlook: Getting in to overbought territory with resistance at 108.55/60 then 109.25/30. However if we break higher, 110.10/20 should cap this week. Downside targets are 106.70/40 & 105.30/25.
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