Brent oil futures flirting with key technical support
Updated : 10:04
Front mont Brent crude oil futures are testing a key level of technical support which if lost might open the way for a fall towards $46.00.
The level to watch on a close of market basis is $50.25. That is to say, as long as it remains above that level at the close of play on Wednesday then at least a partial recovery is possible.
Nevertheless, the fact that it had already moved below it on an intra-day basis appeared to indicate that an eventual move beneath it was likely on the cards, said Jose Maria Rodriguez, technical analyst at Digital Look.
To take note of, Brent crude futures remained within an upward sloping price channel between roughly $46 and $59 per barrel.
Even so, a drop below $50.25 would mean that it had surrendered the previous week's lows - a key technical development.
It would also mean a further move away from its 200-day moving average which lay at about $50.55 a barrel.
In turn, that would open the way for a further move towards the bottom-end of the price channel, now at approximately $46.0.