Brent oil – Fresh rally attempts to break above five-day congestion
|BRENT OIL
Brent oil price surged above $57.00 barrier on comments from OPEC about further compliance on agreed oil production curb, ending five-day directionless trading. Fresh direction signal comes on today's rally after five consecutive Dojis, shifting focus towards the top of multi-week consolidation. Firm break above $58.36 (03 Jan high) is needed to signal resumption of recovery phase from $27.09 (20 Jan 2016 low) towards psychological $60.00 barrier (also near Fibo 76.4% of $70.31/$27.09, May 2015 / Jan 2016 descend). Daily studies are in full bullish setup and support further advance, however, overbought conditions on lower timeframes would signal hesitation on approach to key short-term barriers. Rising daily Tenkan-sen (currently at $56.19) is expected to contain extended dips and guard key near-term support at $55.55 (top of thick daily Ichimoku cloud).
Res: 57.42; 58.36; 59.00; 60.00
Sup: 56.80; 56.55; 56.19; 55.55
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