Brent Oil – Bull may extend to key $59.48 barrier after consolidation
|BRENT OIL
Brent oil rallies strongly for the second consecutive day and hit nearly three-week high at $58.46 on Monday. This also marks Fibo 76.4% of $59.48/$55.04 pullback, with daily close above broken Fibo 61.8% at $57.78 seen as strong bullish signal for final push towards key barrier at $59.48 (26 Sep high). North-heading daily Tenkan-sen underpins the action after forming bull-cross with Kijun-sen line. Near-term bulls are also supported by strong fundamentals. On the other side, weak reading of 14d momentum on daily chart warns of stall and consolidation before bulls resume. We expect shallow downside action which should be ideally contained by broken Fibo support at $57.78, ahead of final push towards $59.48 target. Stronger bearish action could be expected on violation of rising Tenkan-sen ($56.74).
Res: 58.46; 58.87; 59.23; 59.48
Sup: 57.26; 57.13; 56.74; 56.25
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.