Brent oil holds in red for the fifth consecutive day and extends the bear-leg from $110 resistance zone (after a multiple upside rejections) below psychological $100 support on Tuesday.
Growing hopes that diplomatic actions would prevent further escalation, brought fresh wave of optimism and deflated oil prices for more than $10 in past couple of days, easing pressure on global markets which faced sharp increase in prices due to persistent supply shortages.
Pullback from $110 zone, where a lower platform is developing, cracked important Fibo support at $97.67 (38.2% retracement of $78.10/$109.77 upleg), adding to growing bearish signals on daily chart, following earlier break of 10DMA ($104.24) and violation of $100 threshold.
Fading positive momentum dented still predominantly bullish daily studies, with clear break below $100 needed to verify fresh negative signal and keep the downside under pressure.
However, developments on geopolitical front will remain key factor that determines price direction, with focus on meeting of US and Iranian presidents during the UN meeting, as well as strong pressure from Gulf countries to find diplomatic solution and prevent deepening crisis.
Analysts remain cautiously optimistic, but fully aware of maximal demands from both sides which may be strong obstacle to negotiations.
Res: 102.30; 104.24; 104.88; 106.00
Sup: 97.67; 95.02; 93.94; 91.45
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