- Brent’s 4-hour chart RSI is reporting a bullish divergence.
- Daily RSI is printing oversold readings.
- The stalled corrective bounce could again pick up pace but gains could be capped near $62.50.
Brent oil is flashing gains in Asia, but the corrective bounce from the four-month low of $60.24 seems to have run out of steam close to $62.00.
The black gold is currently trading at $61.70 per barrel, representing 0.5% gains on the day, having hit a high of $61.96 earlier today.
Prices could move above $62.00 in the next few hours, as the 4-hour chart now shows a bullish divergence of the relative strength index (RSI). Also, the 14-day RSI remains in the oversold territory below 30.
However, with the descending (bearish) 5-day moving average (MA) located at $62.46, gains above that level, if any, may not be sustainable.
4-hour chart
Trend: Corrective rally
Pivot points
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