- 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.
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).
- R3 70.81
- R2 69.67
- R1 68.88
- PP 67.74
- S1 66.95
- S2 65.81
- S3 65.02
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