After a two-year rally from 2016, the Brent crude oil is on a losing streak since beginning of October 2018 (Chart 1). It has plunged about 30% from USD86 per barrel to USD59 per barrel (26 Nov 2018). What sparked the sell-off?
From technical chart perspective, the MACD divergence was observed since June 2018 (Chart 2). It formed the deadly cross on 22 Oct 2018 and triggered the sell-off confirmation signal (see pink arrow). At the range of USD55 to USD60, it may find a breather as there are few support lines. If the price could not hold up well at this range, further downside may be foreseen in near term.
Chart 1. Brent Crude Oil Weekly Chart 2007 - 2018
Chart 2. Brent Crude Oil Weekly Chart 2013 - 2018