Thursday, 18 September 2014

The Crude Oil Price Collapse

The first graph is $BRENT (Brent Crude Oil EOD SPOT PRICE) plotted using daily prices.




Observations.

1. The 200 day moving average of $BRENT (Green Line) has started dipping.

2. The 50 day moving average (Red Line) has collapsed.

3. The 20 day moving average (Blue Line) has collapsed.

4. The daily spot price of $BRENT has slipped below all the above mentioned moving averages.


Conclusion:
Daily $BRENT has been in bear territory on wavelengths 20, 50 and 200 days.



The following graph is $BRENT plotted using weekly EOD SPOT PRICE:


1. The 200 week moving average of $BRENT has started flattening, and is barely above the 200 day moving average.

2. The 50 week moving average of $BRENT is falling.

3. The 20 week moving average of $BRENT is falling.

4. The weekly EOD spot price of $BRENT is trading well below all the above mentioned.


Conclusion:

$BRENT is collapsing....the 200 week (4 year) uptrend of $BRENT is under threat. The weekly RSI is at the oversold condition so some temporary bounce-back is possible.



SUMMARY:

There is a very heavy downward force on $BRENT.

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