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Brent backs off again

Earlier this week a key technical level on Brent was identified here on the Quick News and that was a rising trend channel top line. Over the course of several updates that had shifted to $87.75 and the price peaked on Tuesday right on that level, when it topped out at $87.70. The drop back that followed saw it fall to a low at $85.60 yesterday. It did rebound again earlier today, but so far that rebound has blown out at just above $86.60 and now the price is back underneath $86 this morning. The fact that the surging US stock markets last night have not added further traction is perhaps a little strange, but so far that has not happened. What is important to note here, is the reaction in the price once it met that channel top and that could mean the price is now headed back to the lower end of that channel. That is not to say it will, but the lack of traction since $87.70 is suggestive of that possibility. If that is the case, then we could be looking at levels a lot closer to $80 over time. We shall just have to see about that. Brent for May delivery is currently trading at $85.79

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