Brent futures extended their Wednesday losses and are currently trading far below the eight-month high of 71.30, slipping beneath the 20-day simple moving averages (SMAs) and the blue Kijun-sen line. However, in the medium-term the price has a bullish view confirmed by higher highs and higher lows.

The RSI turned lower after entering the bearish area. At the moment, it continues to head lower in support of a negative short-term picture. The bias in the very-short-term also looks bearish as indicated by the stochastics: the %K and %D lines are negatively aligned and are both moving further down. Moreover, the MACD oscillator completed a bearish cross with its trigger line in the positive zone.

Additional declines may drive the price towards the 40-day SMA currently at 64.40. Beneath this line, the 50.0% Fibonacci of the upward move from 56.10 to 71.30 at 63.70 and the Ichimoku cloud with the ascending trend line near the 63.00 psychological level could come in focus.

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In case the pair changes its very short-term direction to the upside again, the bulls would probably challenge the 23.6% Fibonacci of 67.70. A break higher, could last until the 69.63 resistance, registered on September 16. Further up the area around the 70.73 resistance and the eight-month high could be another obstacle for upward movements.

Briefly, Brent crude oil futures maintain a bullish bias in the medium-term as the price still holds above the three-month ascending trend line.


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