Oil Pulls Back from Multi-Month Peak, but Bullish Momentum Remains Intact

Brent crude opened Monday with a bearish gap, pulling back from the nearly seven-month high reached last Friday, as renewed optimism over a potential easing of tensions between the United States and Iran weighed on prices.

Despite the decline, downside pressure has remained relatively contained, with prices falling more than $3 during European trading. Market sentiment continues to be supported by the fragile geopolitical backdrop in the Middle East, particularly ongoing clashes involving the Houthis and Saudi Arabia, prompting investors to remain cautiously bullish.

Profit-taking has also contributed to the latest retreat after last week’s sharp rally, while overbought conditions on the daily chart suggest there is scope for a deeper corrective move in the near term.

Initial support is seen at $112.14, marking the 23.6% Fibonacci retracement of the $95.11–$117.40 advance. Further downside support lies around the psychological $110.00 level, reinforced by the rising 10-day moving average, followed by the 38.2% Fibonacci retracement at $108.89.

However, these levels are expected to attract fresh buying interest, with the broader bullish structure remaining intact and near-term risks still tilted to the upside despite the current pullback.

Res: 117.40; 118.83; 119.47; 120.00
Sup: 114.00; 112.14; 110.00; 109.89