Brent oil buyers can ignore short-term support break
Despite breaking an ascending trend line from early November, Brent oil remains beyond 21-day SMA. However, a clear break beyond the previous support line, now resistance, around $51.30 becomes necessary to renew optimism. Following that, $52.50 and the recent high close to $53.30 can lure energy buyers ahead of making them confront February lows near $53.65. It should, however, be noted that the oil bulls will not refrain from challenging the $60.00 threshold in a case where the quote remains positive past-$53.65.
Meanwhile, a daily closing below the 21-day SMA level of $50.48 needs validation from the $50.00 round-figure to recall the sellers targeting November tops near $49.00. Though, any further weakness below $49.00 can make the commodity vulnerable to retest August month’s high of $46.08. Overall, Brent oil remains in an uptrend but the covid woes are likely to test the bulls.
Meanwhile, a daily closing below the 21-day SMA level of $50.48 needs validation from the $50.00 round-figure to recall the sellers targeting November tops near $49.00. Though, any further weakness below $49.00 can make the commodity vulnerable to retest August month’s high of $46.08. Overall, Brent oil remains in an uptrend but the covid woes are likely to test the bulls.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.