Technical Analysis: Brent oil battles 100-DMA to keep bounce off key support line

Brent oil buyers jostle with 100-DMA while extending the previous day’s rebound from a two-month low, not to forget an ascending support line from late March. Given the RSI recovery from the oversold region, coupled with the bounce off the key support line, the commodity prices may extend the latest upside beyond the immediate DMA hurdle of above $69.00. However, the $70.00 threshold and May’s high $70.40, followed by March’s top surrounding $72.00, could challenge the oil bulls from time to time.

On the contrary, a daily closing below the stated support line, near $68.70, will aim for 61.8% Fibonacci retracement of March–June advances close to $67.30. If at all the Brent bears remain dominant past $67.30, May’s bottom surrounding $64.65 becomes crucial support as it holds the key to the further downside towards the March month’s low of $60.44. Overall, oil prices tease key technical juncture and hence today’s closing will be important to watch.