BRENT rallies to new over 2-yr high
Brent oil surged to fresh high at $65.68 per barrel on Tuesday, extending rally from $61.15 higher base into four straight day and hitting the highest levels since mid-June 2015.
Brent price received additional support from reduced supply on shutdown of North Sea pipeline, which added on effects from major oil producers’ output cut.
Bullish acceleration from $61.15 which formed a higher base and double-bottom on daily chart could extend towards psychological $70.00 barrier and key $70.31 resistance (06 May 2015 high).
Meanwhile, bulls may take a breather as overbought slow stochastic on daily chart signals corrective easing.
Former recovery top at $64.63 (08 Nov high) marks initial support, ahead of $64.00 zone and extended dips to find ground above converged 10/20SMA’s at $63.00 zone.
Res: 65.68; 66.27; 66.73; 67.48
Sup: 65.00; 64.63; 64.00; 63.00