Technical Analysis: 50-day SMA probes Brent oil bulls targeting $46.00
Oil bulls are cheering the OPEC+ readiness to punish those members not complying with the production cut accord while probing the two week high. However, the return of the oil majors in the Persian Gulf seems to probe the bulls around $43.40/50. The same gains strength from the 50-day SMA level of $43.50 to restrict the black gold's immediate upside. While normal RSI conditions and clear trading beyond 21-day SMA favors the bulls, a daily closing beyond the key SMA becomes necessary to aim for multiple resistances below $45.00, not to forget the monthly peak surrounding $46.00.
Meanwhile, a daily close below 21-day SMA, at $42.87 now, can quickly target July month's low near $40.90. During the quote's further weakness past-$40.90, the $40.00 threshold may offer an intermediate halt before directing sellers towards the monthly bottom close to $39.00. In a case where the Brent oil prices remain weak past-$39.00, the 23.6% Fibonacci retracement level of $38.78 will be important as it holds the gate for the commodity's fall to June month's low near $36.30.