Welcome to week 11 of the year 2019. We are indeed well into the consolidation period after a strong eight-week magnificent rally.
Last week the Brent crude oil managed to recover somewhat on Friday from its 100MA but remains in a consolidation phase. We still believe we are going to spend some more time on consolidation mode before take off to 70$ handle its 200MA in the coming days.
On Monday, the price gave highest daily closing since February 27 with the RSI has been picking up and the oscillator turned bullish crossover. As long as the crude oil price is holding 63.90$ we expect a bullish break higher towards 70.00$-70.50$ levels. Volatility has been falling since a week and the bulls well supported by the 100MA.
Traders eye for fresh clues, focusing on the forthcoming OPEC events scheduled next month.
We still believe the near-term stage is set for consolidation followed the final upmove. Last eleven days trading behavior has laid the foundation between 64.50-64.00$$, and we advised traders to remains with a positive bias.
A move beyond last week’s high 67.80$ would unfold next leg of the rally towards 70.00 and 70.50$/70.70$ its 200MA and 50MA (Weekly). Supports located at 64.40$, 63.75$ and 62.50$.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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