Brent crude oil futures rose to a new more than 3-year high on Thursday slightly above the strong psychological level of 70.00. During today’s European session, the price headed for a test of the aforementioned level and retreated over the next hours.
The price continues to print higher peaks and higher troughs above the uptrend line taken from the low of December 14 and as such the short-term outlook remains positive.
In the 4-hour chart, momentum indicators are also pointing to a continuation of the bullish bias. The RSI holds above the 50 level, while the MACD is posting a bullish crossover with its trigger line. Additionally, the three simple moving averages (50, 100 and 200) are following the upside movement on price in the 4-hour as well as the daily charts, pointing to a positive picture in both the short and medium term.
A dip back below the ascending trend line could confirm the case for a bearish correction until the 68.55 support level or moreover until the immediate resistance of the 23.6% Fibonacci retracement mark at 67.84 of the up-leg from a more than a one-month low of 60.90 to a high of 70.00.
On the flip side, if traders boost the price further, it could come around the next resistance barrier of 76.80, defined by the bottom of November 2014. As a side note, strong resistance obstacles could come from the next psychological levels where the price may have a pause.
