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
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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
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