Oil prices ease from new multi-month high but larger bulls remain firmly in play

Brent oil opened with gap-lower on Monday, easing from the highest in nearly seven months, hit last Friday, pressured by fresh hopes of potential easing of hostilities between the US and Iran.

The pullback was so far limited (the price was down over $3 in European trading) as situation in the region remains fragile, particularly due to persisting clashes between Houthis and Saudi Arabia, that make investors cautiously optimistic.

Overbought daily studies contributed to profit taking after strong acceleration last week and show more space for corrective easing.

Initial support lays at $112.14 (Fibo 23.6% of $95.11/$117.40 upleg), followed by psychological $100 level (reinforced by rising 10DMA) and Fibo 38.2% at 108.89, which should contain dips and offer better levels to join bullish market, as near-term risk remains skewed to the upside.

Res: 117.40; 118.83; 119.47; 120.00
Sup: 114.00; 112.14; 110.00; 109.89