Brent Oil is on a 3 day losing streak that adds up to a 7.75% loss. The commodity was able to break 3 support levels found in our 23.6%, 38.2% and 50% Fibonacci retracement. This could signify a trend change for the short term, and allow the price to continue falling.
The price is currently aiming to the 64.08 level and since the relative strength index is at 42% we could see that happening in the upcoming sessions. Once the RSI enters an oversold status we could potentially see the end of the pullback. Bollinger bands are opening up which is why we think volatility could be high in the upcoming trading sessions. The price trades below the lower band which indicates that the price is considered relatively low, but since the RSI is not oversold yet we do not anticipate an immediate recovery, there are other fundamental factors that could send the price to the 64 level.
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