Brent oil technical analysis: Bounce from one-month low has taken shape of a bear flag
- Brent's 4-hour chart shows a bear flag.
- A break below $61.28 would confirm a flag breakdown.
Brent oil's recovery from one-month lows hit on Friday has taken the shape of a bear flag on the 4-hour chart.
A bear flag or an inverted flag is a continuation pattern, which usually accelerates the preceding bearish move.
A 4-hour close below the lower edge of the flag, currently at $62.78, would confirm a breakdown and create room for a sell-off to 457.00 (target as per the measured height method).
On the way lower, Brent may face strong support at the recent low of $61.28.
As of writing, a barrel of Brent oil is changing hands at $63.26. Prices hit a high of $$64.01 on Monday, having printed a low of $61.28 on Thursday, a level last seen on June 18.
4-hour chart
-636994505019208185.png)
Trend: Bearish below $61.28
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.
