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

    1. R3 70.81
    2. R2 69.67
    3. R1 68.88
  1. PP 67.74
    1. S1 66.95
    2. S2 65.81
    3. S3 65.02

 

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