Brent: Cannot rule out some rallies - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that they cannot rule out some rallies in brent prices, as the daily stochastic is picking up, towards a resistance at 53.90 (daily parabolic).

Key Quotes

‘'A break of this barrier would suggest a more pronounced rally to 55.65-55.80 (weekly parabolic) but we don’t favor such a view. The tightening in the daily volatility indeed prevents the contract from recovering lastly all the more so as the weekly indicators are bearish. Against this backdrop, it is more likely that the contract will reverse downside to a support at 49 (weekly Bollinger lower band) whose break would lead to 47.55 (monthly Bollinger moving average).  The resistances stand at 52.45, at 53.90, at 55.65/80 and at 58.05.’'