Interesting moves are recorded on the Brent weekly chart. The price s trading lower for six weeks in a row. As per the available historical data last time, the price fell for 12 weeks between October and December 2018. Prior to these, eight weekly downfalls were recorded between June-August 2015, and six weekly downfalls were recorded between July-December 2008.
So far, the black gold has lost 19% from October high.
Since November 2020 lows, we have had witnessed three meaningful corrections on the weekly chart, which accounted for 15%, 17%, and 22%. Now we have lost the height of 10% only. Interestingly brent crude clocked a four-week straight fall. Last we saw four weekly falls was in between February -April 2020.
At the time of preparing this, Brent oil lost nearly 3% of the vaccine headlines. Moderna CEO said new vaccines are required for the Omricon variant. These headlines raise the risk-off tone.
During the Asian session, it is trading at $71 tad above 50MA on the weekly. Chart. Whereas on the weekly chart, the price lost all the moving averages, including 200MA. This is not an unexpected move, as we have been warned readers to stay cautious around $86 levels. October 2021 high was $85.80.
At the time of preparing this article interview with Luis de Guindos, Vice-President of the ECB, conducted by Guillaume Benoit, Édouard Lederer, and Thibaut Madelin on 24 November and published on 30 November.
Commenting on the vaccine rate, Lederer said, “The vaccination rates in Spain and Italy, for example, are very high, in the region of 90%. Infection rates are highest in countries with lower vaccination levels of around 60-70%. Moreover, a policy of booster jabs is gaining ground, as is the requirement for a health passport. And the economic impact of a lockdown is no longer the same either because the economy has now adapted to the situation.”
The relentless selling rags the daily RSI to an oversold level and the price to 50MA weekly i.e., $69 levels.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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