Nine-month-old support line becomes crucial for Brent oil bears
Brent oil sellers cheer a clear downside break of 200-DMA and 50% Fibonacci retracement of March-October upside around 13-day low. While bearish MACD signals and descending RSI line, not oversold, favor the commodity sellers, an upward sloping trend line from March 23, around $68.70, is the key for the quote’s further downside. Should the commodity bears drop below $68.70, the 78.6% Fibo. and August month’s low, respectively near $66.20 and $65.10, will return to the charts before directing the British energy benchmark towards March’s low of $60.44.
Meanwhile, an upside clearance of the support-turned-resistance confluence around $73.50 will aim for a 38.2% Fibonacci retracement level of $76.70 and then to July’s swing high near $78.50. In a case where Brent oil buyers manage to cross the $78.50 mark, the $80.00 psychological magnet and $82.80 will act as buffers during the run-up targeting the yearly peak of $86.60. To sum up, Brent oil bears tighten the grip but the ball may slip if the trend line support holds.
Meanwhile, an upside clearance of the support-turned-resistance confluence around $73.50 will aim for a 38.2% Fibonacci retracement level of $76.70 and then to July’s swing high near $78.50. In a case where Brent oil buyers manage to cross the $78.50 mark, the $80.00 psychological magnet and $82.80 will act as buffers during the run-up targeting the yearly peak of $86.60. To sum up, Brent oil bears tighten the grip but the ball may slip if the trend line support holds.