Technical Update - Brent and WTI Crude oil resumes bear trend. Dutch Gas trying to build upside momentum
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Brent oil has cancelled bottom and reversal pattern resuming bear trend. Support far away
WTI hovering around support but medium-term bear trend still in play
Dutch Gas testing key support likely to break higher
Brent Crude oil has cancelled its bottom and reversal pattern by closing yesterday below $80.61. Bear trend has resumed. Brent is currently testing the 0.50 retracement of the entire uptrend since its trough in 2020 at 77.76. However, there is no strong support until around 65.
Weekly RSI is back below 40 i.e., supporting the negative outlook
WTI Crude oil is hovering around $73.80. If closing below WTI will confirm down trend has resumed cancelling the Hammer bottom and reversal pattern from last week.
On the weekly chart the down trend is clear. WTI is trading in a wide falling channel and has been rejected at 100 weekly SMA. No support until the 0.382 retracement of the 2020-2022 uptrend at 65.25 and the strong support at around 61.82.
200 weekly SMA will provide some support.
Dutch Gas is testing key resistance at 147. A close above is likely to send Gas higher in coming weeks towards resistance at around 188.
If Dutch Gas gets rejected and slides back below 125 bear trend is likely to resume
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