Brent oil started the new year on a bullish note, ended the first week of 2018 with solid with 1.30%. 2017 was a good year for the oil, climbed to its highest level since 2015.

In the week to Jan 02, money managers cut their long positions, CFTC said on Friday.

Weekly range: 70/70.30$-65.40$

According to Reuters, Drillers cut 5 oil rigs in the week to Jan. 5, bringing the total count down to 742, Baker Hughes energy services firm said on Friday.

Fib extensions: Weekly 161.8fe (43.54-58.35-44.23) seems at $68.30. The oil price has been moving North with RSI divergence on the daily chart. The price has already completed our targets (65.50$) since then we remained sidelines.

It has a parallel resistance seems between 68.50$-69.60$ May 2015 high, rounded to 70.0$. A weekly close above 70.0$ needed to forecast 71.50$ and 73$ in the near term. Alternatively, selling accelerates below 65$ could retrace to 61$.

Support zones:  65.30$-64.50$ and 61.60$-61$ (below chart)

61$ support is now key and should main the current uptrend.

View: Neutral

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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