Brent crude knocking against the broken Jan lows
As everything is alright in the world now oil is joining in with the cheer and staging a bounce
We've been up to 45.20 odd in futures and have found the broken Jan low holding resistance
Brent crude daily chart
Oil is moving on the risk on/risk off trade right now but the US GDP data also adds a decent reason for see support coming in as it indicates the possibility of higher demand in a growing economy. As we know, the supply/demand balance is tilted firmly to the supply side and anything that potentially eats into that reduces the weight on the downside
We're not going to let one report change the current trend though are we?
There's scope to see a bounce to 48.00 at the least, and then to 50.00/50. Anywhere near that line at 52.50/55 looks good for a short trade if there's not material change to production news
Once again we're still in the phase where markets are wringing out the early part of the week so a further jump in the price of oil is not necessarily in indication that the trend has changed
Further out we still have some juicy support levels around the $37-42 area should we continue the trend lower
Brent crude monthly chart