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Technical Analysis: Brent oil fades bounce off 100-day EMA

Short
TVC:UKOIL   CFDs on Brent Crude Oil
Although supply crunch talks trigger Brent oil’s bounce off a two-month low the previous day, the black gold remains pressured towards re-testing the 100-day EMA level amid US push for more output and fresh covid woes from Eurozone. It should be noted, however, that the quote’s weakness past $77.85, comprising the stated EMA , won’t hesitate to challenge the 50% Fibonacci retracement level of August-October upside near $76.00. In a case where the oil sellers keep reins past $76.00, the $73. 40 mark comprising the 61.8% Fibonacci retracement will be in focus.

Meanwhile, corrective pullback needs to cross a two-week-old resistance line close to $80.35 to convince the British oil buyers. Also challenging the Brent oil bulls are the levels marked during early November and the monthly high, respectively around $80.85 and $86.00. During the quote’s run-up past $86.00, the multi-month peak marked in October surrounding $86.70 and the $87.00 may offer an intermediate halt during the rally targeting the $90.00 threshold.

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