Technical Analysis: $64.30, $65.55 become the key hurdles for Brent oil bulls
Brent oil’s gradual recovery from late March nears a five-week-old resistance line. Upbeat RSI conditions and an upward sloping support line favor oil buyers. However, sluggish MACD and 200-SMA offer extra challenges to commodity buyers. Hence, a clear break of an immediate trend line resistance, near $64.30, isn’t enough to confirm the quote’s run-up towards March 10 low near $67.10 but piercing of 200-SMA level of $65.55 also becomes necessary. In a case where the Brent oil prices rally beyond $67.10, $70.50 and the previous month’s top surrounding $72.00 should return to the chart.
Meanwhile, a three-week-old rising trend line around $61.90 defends the sellers while $62.60 offers immediate support during the pullback moves. Should there be a clear downside past-$61.90, the $60.00 threshold may offer an intermediate halt before dragging Brent oil prices to the 61.8% Fibonacci Expansion (FE) level of $58.30.