The Brent crude rallied on the first day of this week after closed the week ending March 1 on a negative note on an overbought condition. On the daily technical basis, the market is entered the overbought zone; any impulse rally could cap the price around 200MA. We believe we are going to spend some time on consolidation mode before take off to 70$ handle its 200MA in the coming days.
Market participants focus on the forthcoming OPEC events scheduled next month.
“OPEC and its allies will probably achieve their goal of draining oversupply from the oil market and boosting prices by next month, says Jeff Currie, global head of commodities research at Goldman Sachs,” CNBC reported.
We believe the near-term stage is set for consolidation followed the final upmove. Last five days trading behavior has laid the foundation at 64.50$, and we advised traders to remains with a positive bias.
A move beyond last week’s high 67.80$ 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$.
Weekly pivotal: The key support level is placed at 64.50$, followed by 63.75$. If the price is moving upward, crucial resistance levels to watch out are 67.00$ and 67.80$.
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