Brent Oil – Bull may extend to key $59.48 barrier after consolidation

Slobodan Drvenica Windsor Brokers

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

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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