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Brent Oil Technical Analysis: Rally stalls with double top on hourly chart

  • Brent oil is currently trading at $74.05 per barrel, having hit a high of $74.70 yesterday. That was the highest level since Nov. 1. 
  • The rally seems to have stalled with signs of indecision on the daily chart – Brent created a doji candle yesterday. 
  • Further, on the hourly chart, the black gold seems to be creating a double top pattern with the neckline support at $73.96. 
  • Acceptance below that neckline support would confirm a double top breakdown and create room for a deeper pullback to $73.22 (target as per the measured move method).
  • A daily close below $74.00 would validate yesterday’s doji candle and neutralize the immediate bullish outlook. 

Hourly chart

Trend: Minor correction possible

Pivot points

    1. R3 74.86
    2. R2 74.5
    3. R1 74.15
  1. PP 73.79
    1. S1 73.44
    2. S2 73.08
    3. S3 72.73

Author

Omkar Godbole

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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