FxWirePro: Brent futures heading deep tunnel – no surprise if $25/brl mark comes on this way

The technicals for this commodity suggest nothing but sell indications as the price curve, rising volumes and both leading & lagging indicators move in tandem with bearish sentiments.

Downtrend of this commodity has been in line with the conformity to the huge volumes (see grey shaded areas).

It has made sloping channel where channel resistance is still remained well below 21DMA region that alerts long term bears are in safe havens to travel for more southward targets.

Currently on weekly price behavior creating more headwinds to break channel support that would signal more bearish potential.

RSI has reached oversold territory but still signaling downward convergence with the slumping prices (currently daily RSI trending at 19.0079 while articulating).

While slow stochastic is stuck below 20 levels but there is no trace of bullish crossover, so overall we don't see any sort of strength in this commodity that can pull back from current levels.

We spotted out the series bearish candles like dojis and current price has fallen below moving average curve.

A worst case risk scenario with Brent prices heading towards $25 in discounting a new oil paradigm cannot be totally ruled out.