Technical Analysis: Oil bulls can ignore recent pullback if Brent stays above $41.90
With the seven-week-old rising channel staying unbroken, oil traders should rest assured that the upside hasn't faded yet. While Brent's consolidation from the channel's resistance line can recall $44.00 and then 200-bar SMA level of $42.95, the channel support around $42.00 will limit the British oil benchmark's further downside. In a case where the bears manage to conquer $42.00, $40.00 and June 25 bottom near $39.30 will be in the spotlight as a break of which could diver the oil players towards $35.00 rest-point.
Meanwhile, the channel's resistance near $45.70 and the latest top near $45.90, followed by $46.00 round-figures can challenge the black gold's short-term upside moves. It should, however, be noted that the quote's sustained run-up beyond $46.00 will aim for the early-March lows near $48.70/75.