Brent oil created a classic bullish hammer, invalidating the bearish case put forward by the lower highs on the 14-day relative strength index (RSI) and the Doji candle created on Wednesday.
As a result, Brent could test the recent high of $68.68 and possibly break higher toward the 200-day moving average (MA) hurdle, currently at $69.71. The bullish crossover of the 50- and 100-day MAs confirmed on March 14 also indicates the path of least resistance is to the higher side.
A bullish-to-bearish trend change would be confirmed if prices close below $66.56 (low of the bull hammer candle). At press time, Brent is changing hands at $68.20 per barrel.
Daily chart
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Trend: Bullish
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