Brent Technical Analysis: Failed breakout has exposed 5-day MA support

Monday's candle is signaling buyer exhaustion and scope for correction.
A pullback to the 5-day average support looks likely.

Omkar Godbole FXStreet Contributor

Brent oil has likely created a temporary top and could suffer a deeper pullback to a short-term moving average support.

The black gold on Monday clocked a high of $70.72 but failed to close above the Sept. 16 high of $69.64 and ended on a negative note at $68.41, essentially carving out a candle with a long upper shadow – a sign of buyer exhaustion.

Monday's drop also confirmed a bearish divergence of the relative strength index and the MACD histogram.

All-in-all, brent oil could correct or drop to the ascending 5-day moving average support, currently at $67.56. The case for a drop to $67.56 would weaken on an hourly close above $67.46.

Daily chart

Trend: Correction likely

Technical levels

Brent Oil

Overview
Today last price	69.19
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	69.19

Trends
Daily SMA20	66.53
Daily SMA50	64.11
Daily SMA100	62.45
Daily SMA200	64.27

Levels
Previous Daily High	71.48
Previous Daily Low	68.96
Previous Weekly High	70.32
Previous Weekly Low	66.56
Previous Monthly High	68.54
Previous Monthly Low	61.09
Daily Fibonacci 38.2%	69.92
Daily Fibonacci 61.8%	70.52
Daily Pivot Point S1	68.27
Daily Pivot Point S2	67.36
Daily Pivot Point S3	65.75
Daily Pivot Point R1	70.79
Daily Pivot Point R2	72.4
Daily Pivot Point R3	73.31

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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