Brent technical analysis: Looks south after bearish outside day
|- Brent created a bearish outside day on Monday.
- Prices risks falling to recent lows below $69.00.
Brent oil could retest and may possibly break below the recent low of $68.88, having charted a bearish outside day on Monday.
The black gold had jumped to a high of $72.56, having persistently defended the 50-day moving average (MA) last week. The bounce, however, was short-lived with the price falling all the way back to $69.70, possibly due to trade tensions and risk aversion.
The drop from $72.56 to $69.70 engulfed the price action seen on Friday. Essentially, the bounce from the stiff 50-day MA support ended up creating a bearish outside-day candle.
So a deeper drop could be in the offing in a day or two and the selling could gather pace below Monday’s low of $69.74. As of writing, oil is changing hands at $70.16 per barrel.
Daily chart
Trend: Bearish
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