Brent oil could be in for a pullback below $74.00, as the 4-hour chart is reporting a double top pattern and the bearish divergence of the relative strength index.
4-hour chart
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- As seen above, $74.70 has emerged as strong resistance this week.
- More importantly, the several attempts made to beat that resistance have been accompanied by lower highs (bearish divergence) on the relative strength index (RSI).
- As a result, Brent could confirm a double top breakdown with a move below $73.96 – neckline support. That would create room for a fall back to $73.24.
- The case for a pullback, however, would weaken if the newfound resistance of $74.70 is breached.
Trend: Teasing pullback
Pivot point
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