GT247.com Trading Blog

Technical Take - Short Brent Crude

Written by Musa Makoni | 22 Jun 2017

Short Brent Crude

Brent broke down below a key trendline last week confirming the entry for a short position. Despite the draw in US crude oil inventories indicated by data yesterday, Brent Crude failed to maintain the upward momentum seen just after the announcement and subsequently fell after that.

If you are not already in the short position then this is a good entry level. Market sentiment is very bearish on the commodity at the moment and we expect further downside in the short term. The first key support brent crude might find is around $43.67, however given the height of the break out the full target for taking all profits is just below $40.

We expect that some OPEC members will come out with statements that could possibly push prices higher temporarily in the coming days, but this alone will not be enough to change the current bearish sentiment. Any bounce higher on this downtrend will provide an opportunity to short the commodity once again.

 

 

Given the large extent of the downward move, the stop loss should be the prior day’s high. In today’s case the stop loss should be at most $46.63.

Call in to our trading desk if you need any assistance: +27 87 940 6106

 

 

 
 
Musa Makoni | Trading Specialist at GT247.com
 

Disclaimer: Any opinions, news, research, analyses, prices, or other information contained within this research is provided as general market commentary, and does not constitute investment advice. GT247.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The content contained within is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions.

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