Closing below $70 is a sign for further losses for Brent
Brent crude lost more than 20% from its peak value in early October. Essentially, a decrease of more than 20% from peak value is considered a sign of a bear market for the instrument and indicates a further decline.
During the October sale-off, the oil fell under the support line of the upward channel. However, such an exit from the channel still requires confirmation. Strictly speaking, price should fall and close this day (and week) below previous local lows at 70.80.
It is interesting to see both lines dangerously passing close to the round level of $70 which is itself can be strong psychological level. There is also an important prior support area around 70.0, from which Brent Crude returned to growth in August.
During the October sale-off, the oil fell under the support line of the upward channel. However, such an exit from the channel still requires confirmation. Strictly speaking, price should fall and close this day (and week) below previous local lows at 70.80.
It is interesting to see both lines dangerously passing close to the round level of $70 which is itself can be strong psychological level. There is also an important prior support area around 70.0, from which Brent Crude returned to growth in August.