The Brent crude oil has remained under selling pressure at the start of this week resulting in Brent falling back to 200MA. The oil price is now testing the key support level provided by the previous break out level at $63.50 and $63.00 its two-month ascending trendline. A decisive break below the trendline would open further down towards $62.00 its 100MA. As we highlighted in our previous weekly report, the price is running towards our bearish target $63.50-$63.00.
Oil price lost 1.50% on Monday as the middle east tensions ease. Now the oil prices may fall into a range of $63.00-$59.50 November 2019 swing low. A break below $59.50 would increase the chances of continuing down towards $58.00; its 100.fe. However, the short-term technical picture suggests that the oil price is in the final wave of correction, and a decent bounce may start from the $63.00-60.00 range.
The relative strength index indicator is at 42, and the oscillator is remaining bearish. These suggest remaining neutral and keep focussing on the key support area (below chart). In case of a decent bounce watch out for $65.00 and $67.00 levels.
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