Finally, the Brent crude oil price settled above the 100MA for the first time since December 2019. And also, monthly, the price closed above 20MA for the first time since April 2019. Now the price action running to an area of resistance defined by the following:
Any minor corrections will attract buyers as the weekly A-B-C pattern suggest $63 is the next immediate target. The nearest resistance from the current level is at $56.25, beyond which the resistance comes between $58-$58.20. Until the price stays above the support zone of $50.50-$49, it can be approached with a bullish bias.
Two factors led the recent rally:
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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