Technical Analysis: Brent oil bulls confront key hurdle around $72.00
Having failed to conquer $72.00 during early 2020, Brent bulls again confront the key hurdle comprising 78.6% Fibonacci retracement level of October 2018 to April 2020 south-run. Although fundamentals are favoring the black-gold buyers, overbought RSI and the strong upside resistance challenge the commodity’s further rise around $72.20. If at all, the bulls cross the same, April 2019 peak surrounding $75.50-60 can validate the run-up to the late-2018 top near $87.00.
Meanwhile, the $70.00 psychological magnet can offer immediate support to the energy benchmark before recalling the mid-February lows close to $62.00. It should, however, be noted that the oil bulls should remain hopeful unless the quote drops below 61.8% Fibonacci retracement and 200-week SMA area near $60-59.00. Following that, the bottoms marked during January 18 and 22, 2021, close to $54.50, will be in the spotlight.