Brent started the last quarter of the year by breaking out of the range it was in during September and got as far as $54 before hitting our supply zone.
It is currently retesting the breakout zone (where old highs become new lows perhaps) and a broken trend line. This area is near the 61.8 fib of the move up over the last week or so.
Oil prices have come off the their highs from last week – likely on profit taking amounts speculators and bearish sentiment from China and comments from the International Energy Agency who forecast an oversupply thanks to slowing demand.
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