Technical Analysis: Brent oil bulls aren’t out of the woods
Brent oil struggles to keep bounce off 200-SMA above $76.00 as sellers attack 50-SMA amid early Monday. However, MACD is about to positive while RSI is strong as well, not to forget the black gold’s sustained trading above the key SMA. Hence, oil buyers are bracing for a leap towards the monthly resistance line around $79.00, which in turn will refresh the multi-month high. In doing so, the latest high surrounding $76.30 and $77.50 may entertain energy optimists. Should the Brent bulls keep reins past $79.00, the $80.00 psychological magnet will be a tough nut to crack for them.
On the downside, a clear break of $75.80, comprising 50-SMA, will direct short-term sellers towards 200-SMA support of $73.38. However, any further weakness needs to conquer a horizontal area from June 03, around $72.10, to recall the oil sellers. Following that, May 18 swing high near $70.30 may offer an intermediate halt during the fall to the $70.00 threshold and $69.00 support levels. Overall, Brent oil remains on the bullish trend and any pullback above $72.10, can be considered a buying opportunity.
On the downside, a clear break of $75.80, comprising 50-SMA, will direct short-term sellers towards 200-SMA support of $73.38. However, any further weakness needs to conquer a horizontal area from June 03, around $72.10, to recall the oil sellers. Following that, May 18 swing high near $70.30 may offer an intermediate halt during the fall to the $70.00 threshold and $69.00 support levels. Overall, Brent oil remains on the bullish trend and any pullback above $72.10, can be considered a buying opportunity.