Brent oil found takers in the US session and rose above $36.00 levels after having bids around hourly 50-MA support earlier today.
Will it sustain above $36?
Prices clocked a high of $ 36.96 on Friday, but fell below $36 handle by NY closing. Moreover, prices trimmed gains even though Baker Hughes reported a tenth weekly fall in US oil rig count.
As of now, prices are struggling to extend gains above $36 levels. A strong USD may be capping gains. Furthermore, the talk of OPEC and non-OPEC meeting in March is not offering any help to the bulls either. Still, Chinese rate cut and a possible risk-on in US stocks may aid prices sustain above $36 levels.
Brent Technical Levels
The immediate resistance is seen at 36.14 (Jan 29 high), above which the prices could test 36.96 (Feb 26 high). On the other hand, a breakdown of immediate support at 35.17 (hourly 50-MA) would open doors for a drop to 33.56 (50-DMA).
(Market News Provided by FXstreet)