Brent Oil Technical Analysis: Double top with bearish RSI divergence on 4H

Brent oil could be in for a pullback below $74.00, as the 4-hour chart is reporting a double top pattern and the bearish divergence of the relative strength index. 

4-hour chart

  • 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

Pivot point

    1. R3 74.73
    2. R2 74.4
    3. R1 74.1
  1. PP 73.77
    1. S1 73.47
    2. S2 73.14
    3. S3 72.84


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