Brent oil remains firmly in red and extends weakness on Thursday after falling 10% on Wednesday and ending day with 5.5% loss.
Growing hopes for a US-Iran peace deal provided relief, keeping oil prices under increased pressure for the third straight day.
Bears probe again through important supports at $100.67 and $100.00 (50% retracement of $86.08/$115.26 upleg / psychological) which were broken on Wednesday’s spike to $96.76 but failed to register a daily close below these levels (market closed at $101.86).
Strong optimism about possible solution for the Middle East that would open way for stabilization of global oil market, which was strongly hit by closure of one of the world’s key oil / gas supply routes, continues to deflate oil prices.
Sustained break below $100 level to generate fresh bearish signal for attack at next strong support at $97 zone (Fibo 61.8% / Wednesday’s spike low), violation of which to confirm the signal and open way for further weakness (base of thick daily cloud lays at $91.36).
Broken pivots at $100.00/67 and $100.94 (cloud top) reverted to resistances, which should cap potential upticks to keep larger bears intact.
Res: 100.00; 100.97; 102.63; 103.43.
Sup: 97.25; 96.76; 93.93; 92.97.
