Brent crude opened with a lower gap and hit the lowest level in more than two weeks on Monday ($96.88), driven by a new wave of optimism about a possible peace deal between the United States and Iran, although the main points of the negotiations are still under discussion.
Fresh weakness broke through initial support levels provided by the triangle support line/55DMA ($103.99/$102.73 respectively), fell below the psychological $100 level and broke through the daily bullish cloud (top of the cloud at $99.56) further weakening the Fibonacci support at $97.23 (61.8% from $86.08/). $115.26 tops).
The technical picture on the daily chart has weakened as the movement continues to gain negative momentum and the 10DMA crossed below the 20DMA indicating increasing pressure on the downside.
A daily close below $100 (it would be the first in over a month) is needed to confirm the negative signal and sustain downside attempts through the next pivot support at $96.09 (higher low on May 7), the violation of which would expose targets at $92.97 (Fibo 76.4%) and $90 (round figure).
Meanwhile, the move may take a break above the cracked supports at $97.23 and $96.09, due to oversold conditions.
Rallies (in sustained favorable fundamentals) should be limited and position a new push lower, with a break of $100 and $100.67 (broken 50% retracement) acting as solid barriers that should be an ideal ceiling.
Only a stronger bounce that would fill today’s gap and return to the triangle would do the sideways bears.
Accuracy: 100.00; 100.67; 103.01; 104.64.
SOP: 97.23; 96.09; 94.22; 92.97.
