Technical Analysis: Break of $66.20 keeps Brent oil sellers hopeful ahead of US PMIs
Brent oil traders defend $65.00 during early Friday, snapping a three-day downtrend. However, the black gold’s sustained downside break of 50-day SMA and an ascending trend line from early February favor the sellers targeting March’s low of $60.44. During the fall, February’s bottom around $62.20 can offer an intermediate halt while the $60.00 threshold could challenge the oil bears afterward. It’s worth mentioning that the key Western economies, including the UK, Eurozone and the US, are up for publishing the preliminary readings of May month PMIs and hence cautious mood ahead of the release seems to tame the oil prices of late.
On the contrary, a surprise jump in the quote will have to cross $66.20 support-turned-resistance to register capacity to attack the $68.00 hurdle. It should, however, be noted that the British oil benchmark will be considered weak unless piercing a horizontal area comprising highs marked since March 11, around $70.30-50. If at all bulls keep the reins above $70.50, odds of witnessing a fresh yearly high above $72.02 can’t be ruled out.
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