Brent Technical Analysis: Bearish RSI divergence seen in 4H chart

Omkar Godbole FXStreet Contributor

Brent oil is currently trading at $70.94, representing a 0.42 percent drop on the day and risks falling further, courtesy of the bearish divergence of the 4-hour chart relative strength index (RSI).

4-hour chart

As seen above, the RSI has created lower highs and lower lows as opposed to higher highs on price. The bearish divergence favors a test of the 50-candle moving average (MA) support, currently at $70.72. Acceptance below that level would further strengthen the case for a deeper pullback below $70.00.

A strong bounce from the 50-candle MA would invalidate the bearish RSI divergence.

Trend: Bearish

Brent Oil

Overview
Today last price	70.65
Today Daily Change	-0.31
Today Daily Change %	-0.44
Today daily open	70.96

Trends
Daily SMA20	68.95
Daily SMA50	66.8
Daily SMA100	63.1
Daily SMA200	69.1

Levels
Previous Daily High	71.24
Previous Daily Low	70.49
Previous Weekly High	71.57
Previous Weekly Low	70.08
Previous Monthly High	68.52
Previous Monthly Low	64.01
Daily Fibonacci 38.2%	70.78
Daily Fibonacci 61.8%	70.95
Daily Pivot Point S1	70.55
Daily Pivot Point S2	70.15
Daily Pivot Point S3	69.8
Daily Pivot Point R1	71.3
Daily Pivot Point R2	71.65
Daily Pivot Point R3	72.05

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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