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.

Omkar Godbole FXStreet Contributor

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
PP 67.74
1. S1 66.95
2. S2 65.81
3. S3 65.02

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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