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The fall and the rebound

Posted: 12/30/2012 - 5:03 pm

On December 9, we said that our call to sell the rallies in Brent oil was in place highlighting the fall from 112 to 107 for a loss of 4.5% in Brent prices. We also pointed to the falling channel and we reiterated our call to sell into the rebounds (read: Brent falls off, validates our view).

Since then, we have seen Brent prices rebound to 111 where the important medium-term resistance line currently stands.

Until we see a decisive break above the line, the odds will favor a pull-back from 111. Traders should use the latest rebound as an opportunity to sell.

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