Brent Crude Outlook Remains Negative
Jason Sen | Jul 31, 2014 06:12AM ET
Brent Crude was expected to break 200 day moving average to the downside sooner rather than later. Right on cue prices broke 106.85/75 yesterday and crashed towards our lower target and the July low at 105.60. We are close but not quite there yet. The outlook remains negative despite the oversold conditions, so a good chance of a break below here today. This would trigger more stops and keeps the market under pressure to target May lows at 105.25/15. A break below 105.00 adds more pressure to target 104.70/65 then 104.25/20.
Immediate resistance at 106.80/90 is a selling opportunity on any short term recovery. Exit any longs and try shorts with stops above 107.20. Go with a break higher using 106.80/90 as support for a move towards 107.70/80 for the next selling opportunity.
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