Brent technical analysis: Rising channel breakdown confirmed
|- Brent's daily chart shows a rising channel breakdown.
- MACD about to turn bearish, RSI below 50.
- Deeper losses toward $62.10 likely.
Brent oil closed 1.21% lower at $63.58 on Wednesday, confirming a downside break of an ascending channel on the daily chart.
The bullish channel breakdown is backed by a below-50 reading on the 14-day relative strength index (RSI) and the bearish crossover of the 5- and 10-day moving averages.
Further, the moving average convergence divergence (MACD) histogram is about to cross below zero. That would further confirm a bearish reversal.
As a result, Brent risks falling to support at $62.10 (July 3 low) in the short-term. As of now, a barrel of Brent is changing hands at $63.86 per barrel.
Note that a positive divergence of the relative strength index is seen on the 4-hour chart. So, prices may rise to levels above $64.00 before resuming the drop toward $62.10.
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.