Technical Analysis: Monthly resistance line probes Brent oil's recovery above $40.00

Technical Analysis: Monthly resistance line probes Brent oil's recovery above $40.00

Despite bouncing off the fortnight low, Brent oil prices are yet to clear a falling trend line from August 31, at $42.10 now. While the MACD and RSI are both suggesting a further recovery in the energy benchmark, a 200-bar SMA level of $42.85 and September 18 top surrounding $43.60 can challenge the bulls afterward. Should the black gold crosses $43.60, the September month's peak close to $45.50 will be next on the buyers' radars.

Alternatively, $41.00 and the recent low near $40.30 may offer intermediate halts during the quote's fresh declines. However, the $40.00 threshold and the previous month's bottom around $39.00 can restrict the commodity's further downside. It should also be noted that the bears' dominance past-$39.00 might not refrain from probing June month's low of $36.45.

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