Brent crude’s two-week rally may halt at about $107.60 a barrel as futures reach the top of an upward-sloping trading channel, according to technical analysis by Barclays Plc.
Brent’s August contract traded above the 200-day moving average on June 14 before it capped a two-week, 2.3 percent advance to $105.93 a barrel on the ICE Futures Europe exchange. It also settled above a previous resistance level of $105.15, signaling further gains are possible within a new range, the bank said in an e-mailed report.
“The range break in Brent signals further upside toward the $107.40 to $107.60 range where we would look for signs of a top,” said Jordan Kotick, the global head of technical strategy at Barclays in New York.
Brent for August delivery slid 23 cents, or 0.2 percent, to $105.70 a barrel at 12:35 p.m. in Singapore today. Front-month futures are up 4.9 percent this year. The contract is below its 200-day moving average, at $106.33 today.
“Overall bias is still lower within context of the larger range,” according to Kotick, who identified resistance on the weekly chart at $104.76 a barrel.