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Consolidation for Brent Oil above the 61.25/59.46 immediate support zone is at hand, in the view of strategists at Commerzbank. Below the mentioned level lies support at 56.80.

Key quotes

“ICE June Brent Crude Oil is expected to be supported by the area seen between the current March low, the 55-day moving average and the mid-February low at 61.25/59.46 in the course of this week and may retest the February high at 66.16.”  

“We do not expect the next higher current March peak at 70.67 to be revisited. Instead a top seems to be in the process of being formed, confirmation of which would be a fall through and daily chart close below the 59.46 February 12 low. In this case the January high at 56.80 would be back in focus. Together with the late January low at 54.05 it is likely to offer support. Further down sits the December high at 52.34.”  

“Only an unexpected rise above the recent high at 70.67 would put the January 2020 high at 71.75 in the frame.”