Resistance - $50.89, $52.55, $53.36
Support - $49.68, $49.00, $48.34
Support - $49.68, $49.00, $48.34
- Brent oil rose to $50.00 as anticipated in the morning outlook yesterday. Prices now appear heading towards $50.89 (resistance of trend line drawn from Apr 5 low-Apr 18 low).
- Prospects of such a move are high, given the move above previous high of $49.81 has negated the bearish price RSI divergence on the daily chart.
- However, bulls should observe caution as only a day end closing above $49.81 would indicate continuation of rally.
- The futures currently trade around $50.10 and move below $49.81 would signal corrective rally to $49.00 levels.
