Oil prices has seen a quick ascent from its lows at the start of the month as people begin to price in increased demand with the upcoming US driving season. Note too that production levels until 2025 has largely been broadcast by the OPEC as such focus now will be on actual use of the product. As such we should be keeping a bullish bias atleast until we get near the highs from April at 91.58.
Resistance
- 86.83 – Intraday Consolidation Low
- 86.26 – Daily Consolidation Low
- 85.14 – Yesterdays High
Support
- 84.29 – Intraday Consolidation Floow
- 83.59 – 50D Moving Average
- 83.08 – Intraday Consolidation Resistance
Brent crude saw a tight spinning top for Wednesday suggesting momentum has been lost, particularly as the candle straddles a previous daily level resistance. Note the speed of oil’s rally the past three weeks has us at May’s range play ceiling even as indicators are mixed, with the daily stochastic coming off overbought levels while intraday we are looking to go oversold. Consider buys on a break of the immediate resistance 85.14 or shorts on a drop below 84.29 though any downside is likely to be limited.
