Brent oil has retaken the 4H 200MA of $70.47, having bounced up from the confluence of the 50-day and 200-day MAs near $69.11.
On the 4-hour chart, I see a falling wedge breakout. THe probability of a rise to $72.00 would rise if the 4H RSI breaks above 48.00. As of now, it is hovering at 45.68.
Even if it rallies to $72.00, the outlook as per the daily chart would remain bearish with the 14-day RSI below 50.00 and 5- and 10-day MAs trending south.
Further, the 50 and 100 4H MAs have produced bearish crossover.
Also, the downward sloping 5-day MA is capping upside at press time. So, a rise to %72.00 looks unlikely.
Trade strategy: sell on rise to $72 target $69 with stops above $73.00.
On the 4-hour chart, I see a falling wedge breakout. THe probability of a rise to $72.00 would rise if the 4H RSI breaks above 48.00. As of now, it is hovering at 45.68.
Even if it rallies to $72.00, the outlook as per the daily chart would remain bearish with the 14-day RSI below 50.00 and 5- and 10-day MAs trending south.
Further, the 50 and 100 4H MAs have produced bearish crossover.
Also, the downward sloping 5-day MA is capping upside at press time. So, a rise to %72.00 looks unlikely.
Trade strategy: sell on rise to $72 target $69 with stops above $73.00.