Oil prices quickly sold-off with the release of weak US jobs data reinforcing concerns over the demand side of the price equation. With the shocking build-up in stocks from the US and the Israel-Hamas conflict going into a slow gear we have little reason to see oil pickup up. As such we will look for prices to resume its February to March consolidation.
Resistance
- 84.29 – Intraday Consolidation Resistance
- 83.94 – Previous Bullish Trend Line
- 83.41 – Intraday Consolidation Floor
Support
- 82.61 – Friday Lows
- 81.52 – Daily Consolidation Floor
- 80.85 – Daily Consolidation Low
Brent Crude is a teachable moment about oscillators and breakouts. Oil has pushed through its bullish trend line with a close just around its lows Friday taking oscillators well into oversold areas. Note, when trends develop expect for oscillators to stay at extreme levels crawling overbought or oversold. For now we have Oil Prices also around a bearish channel support suggesting limited downside unless fresh news kicks in. Look to sell whenever prices head for the previous bullish trend line.
