June 18 (Reuters) – The U.S.-Iran ceasefire agreement sent global oil prices tumbling more than 9% this week alone, and technical analysis indicates they could slide further – though the path may be bumpy from here.
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Brent, the global benchmark for crude oil prices, struck a three-month low of $77.75 on Wednesday, according to data supplied by LSEG. As it spiraled lower, Brent broke below key support levels at $86.09 and $79.46 – the weekly low from the week ending April 17 and the 200-week moving average, respectively.
Think of a support level like a floor; it’s a price point where buyers have historically stepped in to stop further declines. When that floor breaks, it signals that sellers are firmly in control.
From a technical standpoint, the 10-week moving average – which smooths out price fluctuations over the past ten weeks – sits at $97.02 and is acting as a ceiling, keeping any recovery in check. The 100-week moving average at $74.78 marks the next likely downside target if selling pressure continues.
That said, a rally back above the 10-week moving average would signal that the sell-off has run its course and revive the chances of a recovery.
What the chart shows:
(Daily markets commentary from Reuters analysts on the signals financial charts are sending – and what they might mean.)
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