Brent crude oil started the week on a subdued note after posted a stellar rally 23.00% since the beginning of the year 2019 and posted the most significant rise for more than a decade.
Back to back three strong weekly closes pushed the price to December 2018 high but failed to handle the parallel resistance zone and rejected against the 50 and 100MA. Recent four days price action is suggesting that in the near term, a close above 64.00$ can be considered as an initial sign of strength for bulls. In this case, a successful foot above 64.00$ could trigger a sharp near-term rally towards 68.50 and 70.00$.
A daily close below 58.90$ head towards the next supports finds at 57.80$ and 56.50$ its 200MA (Weekly). If this week, the price doesn’t close below 58.50$, then bulls take charge to a decent bounce towards 61.40$ and 62.50$.
At the current scenario, long positions unlike to offer better risk-reward. Weekly pivotal finds at 58.50$ and 61.80/62.00$ serve as a key resistance level for the next four days. This followed by 63.75/64.00$ its 38.2% fib reaction.
The supply and easing global growth are continuing to raise the volatility over the near and medium term.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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