Brent oil - bullish invalidation seen below rising trendline
Daily Chart pattern - Rising trend line intact
Support - $45.05, $44.59, $44.27
Resistance - $46.16, $47.00, $48.34
Support - $45.05, $44.59, $44.27
Resistance - $46.16, $47.00, $48.34
- Loss of bullish momentum as prices neared $48.34 (50% Fibo retracement of the fall witnessed from May 2015 high to Jan 2016 low) opened doors for a drop to rising trend line levels.
- Despite sharp drop seen yesterday and in early Europe today. charts indicate bulls remain in control, more so because rising trend lines support at $45.05 and $44.59 is intact.
- A daily closing below $44.59 would indicate short term bullish invalidation, which could be followed by a sideways to bearish action.
- On the other hand, bulls need to watch out for a rebound from rising trend line this week as that could put resistance at $48.34 to test.
