Brent price regained traction and moved higher on Tuesday, as hopes that Iranian oil exports could partially extend after US sanctions kick in November, faded after data released on Monday showed fall in Iran’s crude export in the first week of October.
Three-day pullback from new high at $86.73 was strongly rejected at $82.65 on Monday and subsequent bounce left Hammer candle, generating initial reversal signal.
Close above cracked rising 10SMA which contained pullback and continues to track the ascend, adds to positive signals.
Today’s strong bullish close is needed to complete reversal pattern on daily chart and signal further recovery for possible retest of key barrier at $86.73 (03 Oct high).
Rising 10SMA marks initial support at $83.79, followed by Monday’s spike low at $82.65 and bull-trendline at $82.39, break of which would sideline bulls for deeper correction.
Res: 85.11, 86.73, 87.92, 90.00
Sup: 83.79, 82.65, 82.39, 81.48
