Brent remained in red figures yesterday. A fresh wave of selling interest emerged in the early Asian session. The benchmark pushed away from 81.50 and dropped to 80.50. The EMA200 which was located in this area failed to stop sellers and they extended sell-off to the 78.50 where Brent ran through fresh bids and recovered to 79.50 afterwards. The EMA50 is moving lower, the EMA100 started to change its course while the EMA200 continued moving north. The MACD histogram decreased which indicates the sellers’ strength. RSI turned lower and headed to the oversold levels. The resistance stands at 80.50, the support is at 79.50.
Sellers are unlikely to revisit the level 78.50 in the short-term. We expect a pull back towards 80.00 now.