Brent crude oil futures with delivery in January 2019 plummeted to an almost one-year low around 61.70 on Tuesday. The price is set to complete the seventh straight negative week, however, looking at the very-short term timeframe, it has jumped above the multi-month low today. The MACD oscillator is flattening below its trigger line, while the RSI is moving sideways in the bearish zone.
If the price continues the weak upside movement, it would challenge again the 64.60 resistance, before being able to re-touch the 20- and 40-simple moving averages (SMAs) near 65.54 and 66.14 respectively. A significant leg above these lines could push prices towards the 23.6% Fibonacci retracement level of the downleg from 86.71 to 61.70 around 67.63.
However, in case of a slide below 61.70, the next support would come from the 60.85 level, taken from the low on December 2017. Should prices decline further, the focus shifts to 59.50, identified by the inside peak on September 2017.
Overall, Brent seems to be strongly bearish over the last one-and-a-half months following the pullback on the 86.71 high.
