Technical Analysis: Brent oil consolidates gains from 13-month top around $61.00

Technical Analysis: Brent oil consolidates gains from 13-month top around $61.00

Following its run-up to a fresh high since January 2020, Brent Oil wavers around $61.25 amid overbought RSI and sluggish markets. Given the fresh headlines suggesting US-China tension, coupled with the US stimulus gridlock, the commodity has reasons to look for a pullback. However, the yearly peak surrounding $60.26, followed by the $60.00 threshold, can test the sellers. Also acting as a downside filter is the 21-day SMA level around $57.30. If at all Brent sellers conquer the $57.30 support, the lower line of the three-month-old rising channel, currently around $56.70, becomes crucial.

On the upside, the latest high near $61.80 and the stated channel’s upper line close to $63.00 will lure oil buyers during the fresh rise. Although overbought RSI conditions and strong resistance of the channel may trigger pullback around $63.00, any further will risk a late-January 2020 high of $66.40 and the previous year’s peak surrounding $72.30. Overall, Brent oil buyers seem to overdo their duties amid hopes of economic recovery and supply outage, which in turn hints at the need for a pullback to keep the trading smooth.

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