We have little in the way of a catalyst for oil at the moment with no actual rate cuts happening to potentially spur demand. Though supply side news if more of a curiosity as Russia latest oil find in the Antarctic is not something that could easily be developed. Though overall if things were to break we expect this to be for the upside with the approaching summer driving season in the US.
Resistance
- 85.91 – 50D Moving Average
- 85.18 – April Low
- 84.11/29 – 20D Moving Average / Daily Consolidation Resistance
Support
- 82.95 – Intraday Consolidation Low
- 82.03 – Daily Consolidation Floor
- 80.84 – Daily Consolidation Low
Brent crude has a dark cloud cover in the daily charts as an upside gap at the open is rejected from a daily consolidation ceiling and the 20D Moving Average. Given the resistance and absent any fresh catalyst we prefer looking to sell should we see long wicks coming off the 84.11/29 area. A break of 82.95 may also be seen as a bearish entry. While long hourly tails of 82.03 would be a buy for us.
