Brent crude oil price lost momentum into the close on Monday as traders waiting for a catalyst. The price of Brent lost 20cents and closed below the support 63.85$, which is the first sign of reversal of the trend.
According to the candlesticks chart, the key support levels are placed at 63.10 its 20MA, followed by 62.75$.
“63.10-62.75$ levels are going to be a crucial support zone for the week ahead, further weakness from here is likely to retrace fully back to 62.00$ levels. The new technical profiles are testifying that the Brent crude oil may test again to May lows. The daily oscillator back to sell mode and the RSI lacks conviction.
The daily A-B-C corrective structure is pointing 2018 lows. A clear break down below 59.00$ will strengthen this view.
If the price starts moving upward, the key resistance levels to watch out are 65.00$ and 65.40$. The resistance levels have come down from 66.00$ to 65.40$.
The recent corrective rally capped by oil demand concerns and Iran’s nuclear program.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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