Oil prices ease but larger uptrend remains intact for now

Brent oil edged lower on Friday, with the action being driven partially by limited profit-taking at the end of the week and partially by sour sentiment.

Fresh hopes of potential peace deal between the US and Iran deflated oil prices on Friday, although overall situation remains very fragile, due to escalation of hostilities between Yemeni Houthis and Saudi Arabia, which threatens to further destabilize the region.

Quick changes in sentiment on price reaction to any news, keep the market action volatile, although oil prices remain in a larger uptrend, currently in corrective phase.

Technical picture on daily chart is predominantly bullish, with extended dips to find ground above 100 psychological support to keep positive bias.

Immediate support lays at 104.14 (10DMA), followed by 103.40 (top of ascending hourly cloud), 101.82 (Thursday’s low) and 101.32 (20DMA), guarding lower breakpoints at 100 (psychological and 97.36 (Sep 22 higher low).

Markets will continue to closely monitor developments in geopolitical situation which remains key driver.

Res: 106.37; 108.22; 109.77; 110.00
Sup: 104.14; 103.40; 102.30; 101.32