- Brent fell 3 percent on Thursday, confirming a bear flag breakdown on the daily chart.
- The bearish setup has opened the doors for a re-test of recent lows near $56.20.
Brent oil is operating on slippery grounds with the daily chart reporting a bearish continuation pattern.
The black gold fell 3 percent on Thursday, confirming a bear flag breakdown on the daily chart. The breakdown indicates the corrective bounce from the Oct. 3 low of $56.17 has ended and the bearish trend from the Sept. 16 high of $69.64 has resumed.
The flag breakdown is accompanied by the MACD histogram’s drop into the bearish territory below zero and below 50-reading on the 14-day relative strength.
All-in-all, Brent looks set to re-test the recent low of $56.17. On the way lower, Oil may find support at $58.28 (Oct. 21 low).
Currently, a barrel of Brent is changing hands at $58.94.
Daily chart
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Trend: Bearish
Technical levels
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