Oil prices saw a brief surge Friday on Israel’s retaliatory attack into Iranian territory only fall back to where it opened given the mostly symbolic nature of the attacks underscoring vulnerability of the oil market absent geopolitical tension. We have already heard back from Iran with its Foreign Minister Hossein Amirabdollahian telling NBC News that they do not plan to respond. This brings us back once more to issues of supply and demand, with apparent weakness on the latter.
Resistance
- 89.98 – Minor: Friday wick high
- 88.14/21 – Moderate: 20D Moving Average / Consolidation Floor
- 87.23 – Minor: Intraday Consolidation Resistance
Support
- 85.65 – Minor: Thur/Fri Lows
- 85.10 – Minor: 50D Moving Average
- 84.51 – Moderate: Range Play Floor
Monday’s dragon fly doji suggest the possibility of a bounce in oil particularly with prices just above the 50D moving average. That said we see little potential for a sustained and would look for range play to ensue, consider selling Brent Crude from just under 88.14/21 or gong long off the 50D Moving Average with stops under 84.51.
