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