Brent oil technical analysis: bias remains bearish, $70.56 is the level to beat for bulls

• Brent remains on the defensive, despite the sharp recovery in the overnight trade.
• The outlook would turn bullish if prices close above $70.56.  

Despite the sharp recovery from $68.10 to $69.68, the path of least resistance for Brent oil remains to the downside.  

The black gold is currently trading at $69.54 per barrel and could fall back below $69.00 during the day ahead, as the daily chart is biased bearish.  

For instance, the bearish lower highs pattern is intact. Further, the 10-day moving average (MA) has crossed below the 50-day MA in a price-bearish manner.  

Also, Wednesday’s candle looks like a classic hanging man – a bearish development.  

The outlook would turn bullish only if the price violates the bearish lower highs setup with a daily close above the May 28 high of $70.56. That would open up upside toward $73.34 (May 16 high).  

Daily chart

Trend: Bearish

Pivot points