• Forex
  • Investments
  • Loyalty program
  • Promotions
  • Analysis
  • Getting started
  • About us

Brent tests 100-day SMA resistance on China reopening hopes

Brent futures are climbing on hopes that China is moving towards finally easing up on Covid restrictions and alleviate demand conditions in the world’s largest crude importer.

This global benchmark for oil prices is currently testing its 100-day simple moving average as the immediate resistance level, and is on course for a third consecutive weekly advance.

Brent tests 100-day SMA resistance on China reopening hopes

 

Surer signs that global demand can find a surer footing, of which China’s post-pandemic recovery plays a major role, could further fuel the recovery in oil prices.

Oil benchmarks remain supported by OPEC+ interventions to its supplies, along with the EU sanctions on Russian oil that are set to kick in next month.

From a technical perspective, a meaningful breach of the 100-day SMA could see Brent bulls test the 38.2% Fibonacci retracement level at $98.09 as the next area of interest.

If Brent can overcome the previous cycle high from a month ago and also surpass the psychological $98/bbl mark, that would mark a higher high and potential encourage more oil bulls to return from the sidelines.

 

Share

There's a better website for you

A new exciting website with services that better suit your location has recently launched!

Sign up here to collect your 30% Welcome Bonus.