Technical Analysis: Brent oil buyers can ignore pullback towards monthly support line

Brent oil consolidation the early week’s oversold RSI conditions while dropping back below $78.00 on Wednesday. However, an ascending support line from August 23 and 100-SMA, respectively around $76.70 and $75.00, will challenge the quote’s further weakness. Even if the British oil benchmark drops below $75.00, a horizontal line comprising multiple levels marked since August 30, near $73.50 will challenge the bears.

On the contrary, the corrective pullback will gain momentum beyond $79.00, targeting the $80.00. During the black gold’s further upside past $80.00, the May 2018 peak near $81.00 can offer an intermediate halt during the run-up to the three-year high of $86.95. It’s worth noting that a clear upside break of the $87.00 will be an end to the bear’s reign.

Join us on FB and Twitter to stay updated on the latest market events.