Brent oil pierces 10-week-old resistance to regain $74.00
Brent oil prices jump to a one-week top while crossing a downward sloping trend line from July 06. In addition to the trend line breakout, the bullish MACD signals also favor the oil buyers targeting late July tops near $76.50. However, overbought RSI conditions challenge the quote’s upside momentum, if not then the yearly peak of $77.90, marked in July, will be the key. It’s worth noting that the market’s risk-on mood amid vaccine hopes and improving Sino-American relations join the price revisions by the Middle East countries to recently favoring oil bulls. Though, Fed tapering concerns and virus woes challenge the upside momentum.
It’s worth noting that the US Consumer Price Index (CPI) and Retail Sales for August become the key events of the week. Given the recently upbeat US fundamentals backing the Fed’s recalling of the easy-money, any further upside by the Brent oil needs a strong boost, failing to do so can pull the quote back to the $71.65 support confluence including 200-SMA and 50% Fibonacci retracement level of July-August downside. In a case where oil prices drop below $71.65, the $70.00 psychological magnet and early August lows near $68.15 should return to the chart.
It’s worth noting that the US Consumer Price Index (CPI) and Retail Sales for August become the key events of the week. Given the recently upbeat US fundamentals backing the Fed’s recalling of the easy-money, any further upside by the Brent oil needs a strong boost, failing to do so can pull the quote back to the $71.65 support confluence including 200-SMA and 50% Fibonacci retracement level of July-August downside. In a case where oil prices drop below $71.65, the $70.00 psychological magnet and early August lows near $68.15 should return to the chart.