BRENT TECHS: (U6) Recent Gains Appear Corrective

• RES 4: $120.00 - Round number resistance
• RES 3: $115.16 - 1.382 proj of the Mar 10 - 23 - Apr 17 price swing
• RES 2: $111.60 - 1.236 proj of the Mar 10 - 23 - Apr 17 price swing
• RES 1: $98.99/108.34 - High Jun 3 / High May 5 and a bull trigger
• PRICE: $91.20 @ 07:07 BST Jun 10
• SUP 1: $89.57 - Low Jun 9
• SUP 2: $81.45 - Low Apr 17 and a key support
• SUP 3: $75.06 - Low Mar 10 
• SUP 4: $67.87 - Low Feb 26

Brent futures continue to trade closer to their recent lows. The primary trend set-up remains bullish and short-term weakness - for now - appears corrective. A support area to watch lies at $93.97, the 50-day EMA. The contract has once again traded through this average, a clear break of it is required to strengthen a bear threat and this would expose $81.45, the Apr 17 low. Key resistance and the bull trigger is $108.34, the May 5 high. First resistance is $98.99, the Jun 3 high.

The UKMTO notes reports of an incident 88NM southwest of Balhaf, Yemen. A cargo vessel was approached by one other vessel, triggering an exchange of fire between the approaching vessel and security. The approaching vessel turned away as a result.

• RES 4: 119.00 Round number resistance  
• RES 3: 118.83 High May 29 and a bull trigger
• RES 2: 118.58 High Jun 2  
• RES 1: 118.11 High Jun 3 
• PRICE: 117.28 @ Close Jun 9
• SUP 1: 116.90 Low Jun 8       
• SUP 2: 116.09 Low May 20
• SUP 3: 115.68 Low May 18 and a key short-term support 
• SUP 4: 115.19 Low Apr 7

Medium-term trend conditions in BTP futures remain bearish and recent gains appear corrective. However, a short-term bull cycle is in play, signalling scope for a continuation higher. A resumption of gains would signal scope for a climb towards the 119.00 handle next. Initial key support to watch lies at 115.68, the May 18 low. Clearance of this level would highlight an important short-term bearish development.