Brent oil technical analysis: bias remains bearish, $70.56 is the level to beat for bulls
|- Brent remains on the defensive, despite the sharp recovery in the overnight trade.
- The outlook would turn bullish if prices close above $70.56.
Despite the sharp recovery from $68.10 to $69.68, the path of least resistance for Brent oil remains to the downside.
The black gold is currently trading at $69.54 per barrel and could fall back below $69.00 during the day ahead, as the daily chart is biased bearish.
For instance, the bearish lower highs pattern is intact. Further, the 10-day moving average (MA) has crossed below the 50-day MA in a price-bearish manner.
Also, Wednesday’s candle looks like a classic hanging man – a bearish development.
The outlook would turn bullish only if the price violates the bearish lower highs setup with a daily close above the May 28 high of $70.56. That would open up upside toward $73.34 (May 16 high).
Daily chart
Trend: Bearish
Pivot points
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.