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Technical Analysis: Brent oil drops towards monthly support line

Brent oil prices fail to keep Friday's bounce off $66.70 while dropping back towards an ascending trend line from April 07, around $65.55. However, any further downside will confirm a ‘rising wedge’ bearish chart formation that theoretically drags the commodity towards the $60.00 threshold. During the fall, 200-SMA level around $65.00, a six-week-old support line from $63.80 and the March’s low near $60.45 can offer intermediate halts.

It should be noted that RSI conditions suggest a bounce off the immediate support line near $65.55 may direct Brent oil buyers toward $67.50 and $68.10 levels to the north. In a case where oil buyers remain in control past $68.10, the resistance line of the stated rising wedge close to $69.10 and the $70.00 round-figure will be the key to watch.

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