July Brent Breaks Trend Resistance – Buy Level on Close above US$65.83
July Brent closed above a trend resistance yesterday (09/6/15), indicating that buyers are starting to once again get a foothold in the market. A close above US$65.83 should activate fresh buying interest. Open interest has been on the increase since the 28/05/15, when the market originally dipped below US$61.00. We are also starting to witness increased volume on the upward moves in the market, suggesting that fresh buyers are entering the market.
Moving averages (MA’s) are now turning bullish, with both the 4 period and 9 period MA’s about to cross the 18 period MA. This is being replicated by the Moving average Convergence Divergence (MACD) which is also starting to cross, signalling buying momentum in the July Brent.
A close above US$65.83 is now needed, as this would signal to the buyers that we could push towards the recent high of US$70.36. Note there is a 61.8% Fibonacci resistance at US$70.60, and a trend resistance at US$72.83.