3 Mar 2016
Brent oil: 38.2% Fibo level is a tough nut to crack
Brent oil prices ignored US inventory build up and edged higher in Asia, but the momentum again ran out of steam as prices neared $37.39 (38.2% of Oct high-Jan low).
Trades below $37
Futures currently trade below $37/barrel. Prices failed to take out 38.2% Fibo level for the last two trading sessions, making it a strong technical resistance.
Oil traders got a reality check after the API report on Tuesday showed record high inventory build up. However, prices were boosted by EIA report released yesterday, which showed oil production fell last week by about 25,000 barrels per day (bpd) to just over 9 million bpd, down from a peak of 9.6 million bpd in April.
Still, the bullish momentum ran out of steam at a high of $37.14 levels in Asian session today.
Brent Technical Levels
The immediate resistance is seen at $37.39 (38.2% of Oct high-Jan low) above which prices could test 38.07 (Dec 24 high). On the other hand, a breakdown of immediate support at 35.96 (Dec 22 low) would open doors for a slide to 35.08 (Feb 23 high).
Trades below $37
Futures currently trade below $37/barrel. Prices failed to take out 38.2% Fibo level for the last two trading sessions, making it a strong technical resistance.
Oil traders got a reality check after the API report on Tuesday showed record high inventory build up. However, prices were boosted by EIA report released yesterday, which showed oil production fell last week by about 25,000 barrels per day (bpd) to just over 9 million bpd, down from a peak of 9.6 million bpd in April.
Still, the bullish momentum ran out of steam at a high of $37.14 levels in Asian session today.
Brent Technical Levels
The immediate resistance is seen at $37.39 (38.2% of Oct high-Jan low) above which prices could test 38.07 (Dec 24 high). On the other hand, a breakdown of immediate support at 35.96 (Dec 22 low) would open doors for a slide to 35.08 (Feb 23 high).