Brent Crude Oil Outlook: Bulls struggle to clear key Fibo barrier at $73.02
|Uncertainty over the fate of OPEC+ group production cut deal weighed on oil prices on Monday, after the group reached general consensus over extending the deal which expires at the end of June, but Russia casted doubts over the models of further output cuts.
Fresh concerns weighed on oil price which struggles at key Fibo barrier at $73.02 (61.8% of $75.60/$68.84) for the third straight day.
Technical studies maintain bullish tone and strong momentum, supported by rising tensions in the Persian Gulf, however, failure to reach consensus on continuation of output cut, can bring oil price under increased pressure.
Repeated failure to close above $73.02 pivot would keep in play support at $71.66 (converged 20/30SMA’s) and pivot at $71.14 (10SMA), loss of which will be bearish signal.
Res: 73.02; 73.38; 74.00; 74.40
Sup: 72.06; 71.66; 71.14; 70.40
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