• Brent crude oil reversed form resistance zone
• Likely to fall to support level 70.00
Brent crude oil recently reversed down form the resistance zone lying between the key resistance level 71.30 (which stopped the sharp uptrend at the start of March) and the upper daily Bollinger Band. The downward reversal from this support zone stopped the earlier short-term impulse wave (i) and started the active minor correction (ii) – which is a part of the impulse sequence 3 from the end of May.
Given the strength of the aforementioned resistance zone, deteriorating risk sentiment seen across the commodities markets – Brent crude oil can be expected to fall further toward the next support level 70.00 (Former major resistance from May – which has been reversing the price from March).