Brent Technical Analysis: Upside favored after bullish hammer
|Brent oil created a classic bullish hammer, invalidating the bearish case put forward by the lower highs on the 14-day relative strength index (RSI) and the Doji candle created on Wednesday.
As a result, Brent could test the recent high of $68.68 and possibly break higher toward the 200-day moving average (MA) hurdle, currently at $69.71. The bullish crossover of the 50- and 100-day MAs confirmed on March 14 also indicates the path of least resistance is to the higher side.
A bullish-to-bearish trend change would be confirmed if prices close below $66.56 (low of the bull hammer candle). At press time, Brent is changing hands at $68.20 per barrel.
Daily chart
Trend: Bullish
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.