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1 Feb 2016
Brent oil: Off lows, but recovery stalls near weekly 10-MA
FXStreet (Mumbai) - Brent prices recovered from lows to trade around USD 35.50. Prices touched the weekly 10-MA earlier today for the first time since early November 2015.
Resistance at weekly 10-MA
The recovery off lows appears to have run out of steam as the prices neared the weekly 10-MA seen at USD 35.89/barrel.
Oil was seen flirting with its weekly 10-MA in early November, after which fresh sell-off ensured prices stayed well below weekly 10-MA right till mid-January 2016. A sharp recovery took prices above weekly 5-MA for the first time since early November.
Prices fell today after the data in China showed another drop in the nation’s factory activity. Ahead in the USD index could influence oil prices, especially if the US personal spending and ISM manufacturing data prints well above/below estimates.
Brent Technical Levels
The immediate resistance is seen at 36.14 (Jan 29 high), above which the prices could test 36.95 (50-DMA). On the other hand, a break below 34.75 (hourly 50-MA) would open doors for a drop to 33.01 (hourly 100-MA).
Resistance at weekly 10-MA
The recovery off lows appears to have run out of steam as the prices neared the weekly 10-MA seen at USD 35.89/barrel.
Oil was seen flirting with its weekly 10-MA in early November, after which fresh sell-off ensured prices stayed well below weekly 10-MA right till mid-January 2016. A sharp recovery took prices above weekly 5-MA for the first time since early November.
Prices fell today after the data in China showed another drop in the nation’s factory activity. Ahead in the USD index could influence oil prices, especially if the US personal spending and ISM manufacturing data prints well above/below estimates.
Brent Technical Levels
The immediate resistance is seen at 36.14 (Jan 29 high), above which the prices could test 36.95 (50-DMA). On the other hand, a break below 34.75 (hourly 50-MA) would open doors for a drop to 33.01 (hourly 100-MA).