Brent oil – Major trend reversal, eyes sub-$49.75 levels

Failure at the falling trend line hurdle last week followed by Friday’s close below the rising trend line (coming from Feb 2016 low and Nov 2016 low) signals the rally from the Feb 2016 low has ended and prices could test and possibly breach $49.75 (Mar 2017 low), in which case doors would be opened for $46.43 (38.2% of Feb 2016 low – 2017 high).

Only a weekly close above the descending trend line would signal continuation of the rally from the Feb lows.