Brent oil - sets new 2016 high, watch out for bearish divergence
Resistance - $48.88, $50.00, $50.89
Support - $47.79, $46.80, $45.32
Brent set a new yearly high of $48.63 in Asia is now trading around $48.44 levels. The previous 2016 high was $48.26.
A negative daily closing today would confirm bearish price RSI divergence on the daily chart following an inside day Doji candle.
Hence, that could open doors for a slide to $46.00 levels, where a violation would shift risk in favor of a drop to $45-43.30.
On the other hand, psychological hurdle at $50.00 could be put to test if prices manage to stay above $48.26. Note the daily chart shows a ‘golden crossover’ (daily 50-MA and daily 100-MA).
Support - $47.79, $46.80, $45.32
Brent set a new yearly high of $48.63 in Asia is now trading around $48.44 levels. The previous 2016 high was $48.26.
A negative daily closing today would confirm bearish price RSI divergence on the daily chart following an inside day Doji candle.
Hence, that could open doors for a slide to $46.00 levels, where a violation would shift risk in favor of a drop to $45-43.30.
On the other hand, psychological hurdle at $50.00 could be put to test if prices manage to stay above $48.26. Note the daily chart shows a ‘golden crossover’ (daily 50-MA and daily 100-MA).
