- As seen above, $74.70 has emerged as strong resistance this week.
- More importantly, the several attempts made to beat that resistance have been accompanied by lower highs (bearish divergence) on the relative strength index (RSI).
- As a result, Brent could confirm a double top breakdown with a move below $73.96 – neckline support. That would create room for a fall back to $73.24.
- The case for a pullback, however, would weaken if the newfound resistance of $74.70 is breached.
Trend: Teasing pullback
- R3 74.73
- R2 74.4
- R1 74.1
- PP 73.77
- S1 73.47
- S2 73.14
- S3 72.84
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