Oil Pulls Back from Recent Highs, While Uptrend Holds Firm
Brent crude prices edged lower on Friday as a combination of end-of-week profit-taking and a deterioration in market sentiment weighed on the commodity.
Oil came under pressure after renewed optimism surrounding a potential diplomatic breakthrough between the United States and Iran raised hopes of easing geopolitical tensions. However, the broader backdrop remains highly fragile, with escalating hostilities involving Yemen’s Houthi forces and Saudi Arabia continuing to pose risks to regional stability and energy supplies.
Frequent shifts in sentiment driven by geopolitical headlines have kept oil markets volatile, although the broader price structure remains constructive. The current pullback is viewed as a corrective phase within a wider bullish trend rather than the start of a more significant reversal.
From a technical perspective, the daily chart continues to favor the upside, provided any deeper retracements find support above the key psychological $100 level, which remains crucial for maintaining the positive bias.
Initial support is located at $104.14, marked by the 10-day moving average, followed by $103.40 at the top of the ascending hourly Ichimoku cloud. Additional support levels are seen at Thursday’s low of $101.82 and the 20-day moving average at $101.32. Together, these levels protect the more important downside markers at $100 and $97.36, the higher low recorded on September 22.
Market participants are expected to remain focused on geopolitical developments, which continue to serve as the primary catalyst for oil price movements.
Res: 106.37; 108.22; 109.77; 110.00
Sup: 104.14; 103.40; 102.30; 101.32
