Brent oil technical analysis: Eyes rising trendline support after 2.7% price drop

Brent’s daily chart shows a bearish doji reversal.
Daily chart indicators are biased bearish.
Oil risks falling to key support sat $63.75.

Omkar Godbole FXStreet Contributor

Brent oil fell 2.72% on Tuesday, having carved out a bearish doji reversal pattern in the preceding two trading days, as discussed yesterday.

With the price drop, the 14-day relative strength index has dived out of the ascending trendline, confirming an end of the rally from June lows near $59.50.

More importantly, the RSI is now reporting bearish conditions with a below-50 print.

The moving average convergence divergence (MACD) histogram is also teasing a bearish crossover (drop bellow zero).

All-in-all, Brent looks set to test the support of the trendline connecting June 12 and July 3 lows. As of writing, that trendline support is located at 63..75 and a barrel of Brent is changing hands at $64.50.

Daily chart

Trend: Bearish

Pivot points

1. R3 69.09
2. R2 67.89
3. R1 65.92
PP 64.72
1. S1 62.75
2. S2 61.55
3. S3 59.58

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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