Brent oil dipped to session low at $65.26 on Monday, as fresh weakness following three-day recovery stall retraced the largest part of $64.63/$68.35 recovery rally.
With fading support on expectations that OPEC and Russia would cut output in attempts to stabilize oil market, concerns over persisting US/China trade conflict, which so far shows no signs of end; continuation of imports from Iran from big Asian consumers and fears of further rise in oil output from the US, keep oil prices under strong pressure.
Brent started week in negative mode after being in red for six consecutive weeks and down over 22%, risk of further fall of oil prices remains high. Fresh bears probe below cracked Fibo support at $65.54 (50% of $44.35/$86.73) firm break of which would generate fresh bearish signal and expose target at $62.42 (base of rising weekly cloud.
Falling 10SMA ($68.35) which tracks the downtrend for five weeks, marks pivotal barrier, violation of which would ease immediate bearish pressure.
Res: 67.62; 68.35; 70.00; 71.76
Sup: 65.01; 64.63; 64.04; 63.41
