Brent crude oil fell 1.30% at one point on Monday as the United States said it might grant some waivers on Iran Crude oil sanctions.

Brent oil plunged 1.30% to 82.40$ and recovered fully by the end of the day, closed with marginal gains.

Oil prices rallied more than 10.0% so far this year may rise if supply risk back on the table. With the recent rally, US President Trump pressures Saudi Arabia to push prices down.

Besides, in the past week, bullish bets at its lowest level in a nearly a year, CFTC data showed on Friday.

Initial support finds at 82.40$, could consolidate for a couple of days before tuning either side. A small descending channel has formed in the hourly chart and the daily studies RSI and oscillator are unfavorable.

Supports located at 82.40$, 81.00$ and 80.40$. Yesterday’s dip enabled the price to gather momentum to rally to the immediate resistance zone 83.85-84.20$. Above this could rally further to 85.00$-85.20$.

Note that a drop below 82.40$ would seriously undermine the near-term pull back to the earlier breakout level 80.4$.

Yesterday, we tweeted a risk of a pullback to 82.40$; as a result, the price action made a low at 82.5$ and changed the direction.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

What is your Technical View?

Do you have a different idea? Please leave us a comment and get an answer from our professional analysts