Technical Analysis: Break of nearby support directs Brent oil sellers toward $67.00

Technical Analysis: Break of nearby support directs Brent oil sellers toward $67.00

Despite the recent bounce off intraday low, Brent oil stays below a fortnight-old support line, now resistance. The bearish sentiment also takes clues from the downward sloping RSI line and sluggish MACD signals. Hence, the commodity sellers are well-directed towards the monthly support line, near $66.90. However, the $67.00 may offer an intermediate halt ahead of the stated trend line support. Additionally, the 200-SMA level of $65.62 acts as an extra downside filter should the bears keep reins past $66.90.

Meanwhile, corrective pullback not only needs to cross the previous support line around $68.80 but also requires a clear run-up beyond the weekly resistance line, at $69.30, to recall the Brent oil buyers. During the quote’s successful rise above $69.30, the $70.00 round figure may act as a buffer before directing the bulls to the yearly top near $72.00. 

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