Technical Analysis: Brent Oil confronts 100-day SMA in a run-up to 12-week top
While extending its gradual recovery from April 22, as portrayed by a six-week-old rising trend line, Brent oil probes the 100-day SMA around $39.50 during the early Wednesday. The oil benchmark may now await a clear break of March 11 top near $39.82 to extend the run-up. In doing so, a 50% Fibonacci retracement level of $43.70 and March 06 low near $45.50 will lure the bulls.
On the contrary, a confluence of 38.2% Fibonacci retracement and the aforementioned short-term support line limits the black gold's immediate downside around $36.70/50 area. While the overbought RSI suggests the energy benchmark's further fall past-$36.50, April month top near $32.80 might flash on the sellers' radars afterward.