Brent oil holds firm tone on Friday and trading just under psychological barrier at $80 which was cracked on Thursday’s spike to $80.48 (the highest since Nov 2014).
Oil prices remain supported by growing concerns about sanctions against Iran and heated geopolitical situation in the Middle East, as rising production of US oil had little impact on bulls.
Brent is on track for the third straight bullish weekly close, which adds to strong bullish outlook.
Weekly close above psychological $80 barrier would be strong bullish signal for extension towards next strong barrier at $81.84 (Fibo 61.8% of $115.68/$27.09, 2014/2016 fall).
Meanwhile, consolidative / corrective phase may precede fresh rally as daily studies are overbought slow stochastic bearish divergence warns.
Rising 10SMA ($77.82) is expected to hold and keep bulls intact.
Res: 79.85, 80.48, 81.00, 81.84
Sup: 79.10, 78.51, 77.82, 76.78
