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16 Mar 2015
Oil recovery could be nearly over – RBS
FXStreet (Edinburgh) - Dmytro Bondar, Technical Analyst at RBS, noted that the recovery in the barrel of Brent could be in its final stages.
Key Quotes
“We hold the view that the oil price recovery is about to end, as the monthly chart displays a strong resistance layer at $62/64 and daily charts indicate price consolidating in a triangle and staying there for too long (reaching the apex), which suggests the triangle will become a reversal pattern”.
“Therefore, I believe the bounce will be limited by the $64,87 resistance and the price will retest the $45/42 support, which once broken may see further weakness towards $25/20”.
Key Quotes
“We hold the view that the oil price recovery is about to end, as the monthly chart displays a strong resistance layer at $62/64 and daily charts indicate price consolidating in a triangle and staying there for too long (reaching the apex), which suggests the triangle will become a reversal pattern”.
“Therefore, I believe the bounce will be limited by the $64,87 resistance and the price will retest the $45/42 support, which once broken may see further weakness towards $25/20”.