Global oil prices could extend slide
USO•Brent crude has fallen about 20% since late-October highs. Technical indicators point to scope for further declines if prices break below support around $93.25 to $95.25.
1. Support levels in focus
Brent crude futures recently paused near the $94.07 level, the 50% retracement of their July-to-October rally. That area is reinforced by the 200-day moving average near $93.84 and the 40-week moving average at $95.27.
2. Downside and upside levels
The Relative Strength Index, MACD and Bollinger Bands indicate Brent’s climb since July is over for now and that prices can continue falling. A sustained weekly decline below support in the $93.25 to $95.25 area could put $89 to $90 and then $85 to $86 in view, followed by $78 to $80. A rise above $100 to $101 would raise questions about further falls.
