Nothing is ever easy. Brent Crude saw a whipsaw in US Trading Monday though ranges were limited effectively telling us this remains an indecisive market. Geopolitics continues to take a back seat for Oil even as Hamas has accepted the Israeli ceasefire proposal. With abundant supplies in the US and global demand still weak there appears to be little cause for prices to move high with the immediate risk for us calling for further weakness, unless there is a flareup of violence against shipping routes.
Resistance
- 84.27 – Intraday Range Play High
- 84.11 – Previous Bullish Trend line
- 83.64 – Monday’s High
Support
- 82.60 – Intraday Range Play Lows
- 81.52 – Previous Consolidation Floor
- 80.85 – Daily Consolidation Low
Our bias remains for the sell side of Oil given the trend line breakout and strength of the resistances. As an entry we prefer looking for long wicks coming off 83.64 as an excuse to jump short though a marubozu intraday may also be used as an entry provided there is sufficient room towards the 82.60 support. A break of 82.60 may also be seen as an entry though we would look for a catalyst that driving the market lower. Only reason for us to consider buying will be region wide conflict in the middle east or enhanced attacks by Houthi rebels in Yemen on shipping routes.
