Technical Analysis: Multiple upside barriers to question Brent oil's rise past-$40
Despite trading near a three-month top, Brent oil's further upside becomes doubtful amid multiple resistance and overbought RSI conditions. Among the upside barriers, a confluence of short-term rising channel's resistance line and 61.8% Fibonacci retracement of February-April drop, around $43.10, becomes the immediate resistance to watch. Should the oil prices rally beyond $43.10 on the daily chart, March 06 low near $45.50 and 200-day EMA level surrounding $46.55 will lure the bulls.
During the quote's pullback, $40.00 and March 11 top near $39.80 could restrict immediate downside ahead of the said channel's support line near $37.30. In a case where the bears manage to dominate past-$37.30, the return of the April month high near $32.80 can't be ruled out. It should be noted that while overbought RSI and strong upside resistances signal the black gold's pullback, bears will remain cautious unless the prices break below a short-term ascending trend channel.