Back
4 Feb 2016
Brent oil: off lows and trading around $35/barrel
FXStreet (Mumbai) - Brent futures recovered from the daily low of USD 34.12 to trade well above its 5-DMA located at 34.58/barrel in the US session.
Back above hourly 100-MA
Prices also recovered above its hourly 100-MA at USD 34.39. Both benchmarks witnessed sharp gains on Wednesday, but the move was largely chart driven and triggered by speculation of emergency OEPC meeting.
However, there is skepticism about the possibility of the producer meeting. Meanwhile, the upside also got capped by rising inventories in the US. Futures currently hover around USD 35/barrel.
Brent Technical Levels
The immediate resistance is seen at 36.29 (50-DMA), above which the prices could target 37.11 (23.6% of May 2015 high-Jan 2016 low). On the other hand, a break below the 5-DMA at 34.58 could open doors for a drop to 33.45 (10-DMA).
Back above hourly 100-MA
Prices also recovered above its hourly 100-MA at USD 34.39. Both benchmarks witnessed sharp gains on Wednesday, but the move was largely chart driven and triggered by speculation of emergency OEPC meeting.
However, there is skepticism about the possibility of the producer meeting. Meanwhile, the upside also got capped by rising inventories in the US. Futures currently hover around USD 35/barrel.
Brent Technical Levels
The immediate resistance is seen at 36.29 (50-DMA), above which the prices could target 37.11 (23.6% of May 2015 high-Jan 2016 low). On the other hand, a break below the 5-DMA at 34.58 could open doors for a drop to 33.45 (10-DMA).