Brent Technical Analysis: Bearish 4H RSI divergence invalidated

  • Brent oil dropped to 4-hour chart 50-candle moving average (MA) yesterday, as expected, only to stage a strong bounce and close above $71.70 engulfing Monday's price action.
  • The resulting bullish outside day candle is a bullish continuation pattern and has invalidated the bearish divergence of the 4-hour chart relative strength index (RSI).
  • More importantly, the indicator has violated the lower highs (bearish divergence) with a falling channel breakout.
  • Brent, therefore, could rise to $72.80 (61.8 percent Fibonacci retracement of $86.71/$50.29).
  • The bullish case, however, would weaken if the prices fall back below the 5-day moving average (MA), currently at $71.50.

4-hour chart

Daily chart

Trend: Cautiously bullish

Brent Oil

Today last price 71.94
Today Daily Change 0.09
Today Daily Change % 0.13
Today daily open 71.51
Daily SMA20 69.15
Daily SMA50 66.99
Daily SMA100 63.23
Daily SMA200 69.09
Previous Daily High 71.57
Previous Daily Low 70.44
Previous Weekly High 71.57
Previous Weekly Low 70.08
Previous Monthly High 68.52
Previous Monthly Low 64.01
Daily Fibonacci 38.2% 71.14
Daily Fibonacci 61.8% 70.87
Daily Pivot Point S1 70.78
Daily Pivot Point S2 70.04
Daily Pivot Point S3 69.65
Daily Pivot Point R1 71.91
Daily Pivot Point R2 72.3
Daily Pivot Point R3 73.04




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