Brent Crude unable to beat 112.10/20 as expected and broke 110.40 to provide a sell signal, hitting our target and a low for the day at 109.30/20. We bottomed almost exactly here at 109.00. We meet resistance at 109.95/00 on the bounce but above here could allow continued gains to 110.50/60 for a selling opportunity and a high for the day expected.
Failure to beat 110.00 keeps the market under pressure for a retest of 109.30/20. A low for the day possible again as we start to look oversold short term. However go with a break below 108.90 for 108.45/40. Try longs with stops below 108.00.
Weekly Outlook: Support now at 110.60 then 109.20. Next target is 108.10/00. Above 112.20 can target 113.00 highs last week. A break higher targets 114.28.