On a volatile day for oil markets, Brent crude oil falls 1.5% and snaps two days winning streak.
Brent crude oil opened at 63.15, rose slightly to 63.30 before slipping below 62.00$. It hit an intraday low of 61.60$ before closing at 61.90$, down 1$ compared to the previous close of 63.00$ on June 07.
We stiff feel that the Brent oil is moving in a narrow range and waiting for a breakout or a breakdown before traders could initiate the next course of action. The key levels on the downside to watching is 59.00$, 57.70$ its 50MA (monthly) and 57.00$ its 200MA (Weekly) while on the upside 69.00$ will continue to be a key resistance,
Now a strong close above 64.00$ could breathe some life into bulls. In this case, 66.00$ and 68.50$ could be expected.
Turning to the daily indicators, RSI is recovering gradually, and the oscillator is remaining bullish. Based on this information, we expect the leg room will be limited.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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