Mapping the Market: Tumbling global oil price could fall further

Global oil prices plummeted over 9% this week, reaching a three-month low of $77.75, with technical analysis suggesting further declines are possible.

The U.S.-Iran ceasefire agreement ​sent global oil prices tumbling more than ​9% this week alone, ‌and technical analysis ​indicates they could slide further - though the path may be bumpy from here. Click here for a more detailed ‌chart.

Brent, the global benchmark for crude oil prices, struck a three-month low of $77.75 on Wednesday, according to data supplied by LSEG. As it spiraled lower, Brent broke below ‌key support levels at $86.09 and $79.46 - the weekly low from the week ending April 17 ‌and the 200-week moving average, respectively. Think of a support level like a floor; it's a price point where buyers have historically stepped in to stop further declines. When that floor breaks, it signals ⁠that sellers ​are firmly in control.

From ⁠a technical standpoint, the 10-week moving average - which smooths out price fluctuations over the past ten ⁠weeks - sits at $97.02 and is acting as a ceiling, keeping any recovery in check. The 100-week ​moving average at $74.78 marks the next likely downside target if selling pressure continues. That ⁠said, a rally back above the 10-week moving average would signal that the sell-off has run ⁠its ​course and revive the chances of a recovery.

What the chart shows: (Daily markets ⁠commentary from Reuters analysts on the signals financial charts are sending - and what they might mean.) (Peter Stoneham is a Reuters market ‌analyst. The ‌views expressed are his own. Editing by Burton ​Frierson and Nia Williams)