Resistance – 52.74, 52.92, 54.67

Brent October Futures

Support- 51.81, 51.78, 50.19

Stochastic Daily 88.

Stochastic weekly 65. Trend – Bullish
Brent futures continue in a bull trend making higher highs and higher lows. We have now entered into a period of consolidation in the form of a symmetrical triangle. Technically this is a neutral pattern and needs confirmation of a breakout (in either direction) before entering the market.

Consolidation patterns generally have a higher probability of breaking out in the direction of the trend (in this case to the upside) however again confirmation of a breakout first is needed.

Price action is now above the medium and longer term moving averages. Again a bullish signal.

A close above USD 52.74 would suggest upside continuation. Likewise, a close below USD 51.81 would have bearish implications and market longs should look to tighten risk.