The current downtrend for Brent Crude (Brent) from the 72.68 high in May does not look complete.
Based on our wave counts, we continue to expect lower prices in the days ahead.
The lower lows and lower highs from the wave (4) peak of 56.69 is still intact, suggesting that the downtrend is still ongoing. Brent has further downside to go, targeting a move below the recent low of 43.15.
Possibly stopping area for Brent is 40.01 and 39.35.
The selling momentum is waning as suggested by the diverging MACD and RSI but that does not mean that prices cannot continue on lower.
It just means that the selling pressure may be easing a tad. Near term, prices should stay below 47.15 and the critical resistance at 51.70 if the downside targets are to be met.
Taking out the critical resistance would put the commodity into a complex sideways correction before the final leg down. Continue to look lower here. (Read Report)
Source : CIMB Research