Brent crude slips on global concerns, prices trailing near crucial support levels

Not just the Indian stock markets, but the major and most talked about commodity Brent crude too witnessed a correction at the start of October 2018, which continues till date. Prices have corrected, making lower tops and lower bottoms from the 2018 top of 86.74 made on October 3. Currently, Brent crude is trading at USD 77.58/barrel. 

Despite fear of Iran sanctions which are due next month and possible retaliation from Saudi Arabia of its journalist’s murder, Brent oil prices have seen correction, posting third weekly loss, including today’s session. This was in the wake of Saudi Arabia warning of oversupply. Further, the slackness in equity markets across the globe and the trade war concerns weakened the outlook for the fuel demand in future. 
 
Technically, the price of Brent crude had given a multiple point downward sloping trendline breakout at 78.20 level on September 11, which was initiated on May 16, 2018. Thereafter, the stock gave almost a consistent rally up to 86.74, breaching its prior double top at the 80.50 level. Currently, the prices have breached the prior crucial support at 75.64, though not on a closing basis and are trailing at the support levels.  

The current consolidation could be a breather for another downside rally, where we hold 74.40-74 as the crucial supports, which are 76.4 per cent and 78.6 per cent retracement of the prior upward rally from 70.30 to 86.74 levels, provided 75.10 is broken on a closing basis. On the upside, 78 followed by 80.88 will act as major resistance.