Technical Analysis – Brent adds almost 9% after rebound off 71.30
May 9, 2023 8:27 am
Brent crude oil (delivery in July) jumped almost 9% after the pullback off the 71.30 support level and is holding near the inside swing low of 77.35. Currently, the long-term outlook is neutral-to-bearish and the short-term simple moving averages (SMAs) posted a bearish crossover in the preceding sessions too. However, the technical oscillators are showing some contradictory signs for bullish movements. The stochastic created a bullish cross in the oversold zone, while the RSI is heading slightly upwards.
If the upward action continues, then traders may hit the short-term SMAs at 80.00 before moving towards the 82.90 resistance level. Even higher, the 200-day SMA at 86.14 may halt bullish movements.
In the negative scenario, a failure attempt above 77.35 could open the door for the 70.00-71.30 support region before tumbling further and endorse the negative structure in the broader outlook.
To sum up, Brent crude oil is showing some positive sings in the near term, but the bigger picture is still neutral-to-bearish.
Brent crude oil (delivery in July) jumped almost 9% after the pullback off the 71.30 support level and is holding near the inside swing low of 77.35. Currently, the long-term outlook is neutral-to-bearish and the short-term simple moving averages (SMAs) posted a bearish crossover in the preceding sessions too. However, the technical oscillators are showing some contradictory signs for bullish movements. The stochastic created a bullish cross in the oversold zone, while the RSI is heading slightly upwards.
If the upward action continues, then traders may hit the short-term SMAs at 80.00 before moving towards the 82.90 resistance level. Even higher, the 200-day SMA at 86.14 may halt bullish movements.
In the negative scenario, a failure attempt above 77.35 could open the door for the 70.00-71.30 support region before tumbling further and endorse the negative structure in the broader outlook.
To sum up, Brent crude oil is showing some positive sings in the near term, but the bigger picture is still neutral-to-bearish.
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