Brent crude oil prices (UKOIL) tumbled on Monday, following a range break on Friday. Selling pressure started in early Asian trading, while a break lower was triggered in early North American trading that sent the instrument to 10-week lows. UKOIL was last seen at $44.83 for a decline of 1.87% on the day.
Brent oil prices fell into a range in the second week of July, and have been trading in a broader zone between $46.00 and $48.50, while a declining trendline has capped rallies ahead of the upper range bound. A break lower from the two-week range was seen on Friday, and a recovery attempt from this week's open failed ahead of the previous lows seen at $45.88. Prices reversed at the Asian equity open, and saw a steady decline throughout the day.
The broader technical break initially occurred on July 7 when a rising channel from January lows broke down. The break set a bearish tone for oil prices, and a second break from the range seen on Friday carries potential to take prices back to the 200 period daily moving average found at $42.39. Near-term support is seen at $44.43, the level served as resistance in mid-April, and support in late April.
The acceleration in momentum suggests that any recoveries will be limited. The previous range should cap any rallies at $45.88, and while below the price point, there is a clear bearish bias for oil prices.
Source: EconomicCalendar.com
