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ICE Brent Crude Oil has reached the 71.28/95 resistance area which is expected to put a lid on the uptrend, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, informs.

Key quotes

“ICE May Brent Crude Oil briefly slid to its current March low at 62.38 before surging higher to its current March high at 71.38, right between the January 2018, September 2019 and January 2020 highs at 71.28/95 which provoked failure.”

“Since the spike high has been followed by a drop below yesterday’s low at 67.80 and has also been accompanied by triple negative divergence on the daily RSI, we are of the opinion that a top is in the process of being formed. A fall through the February 19 and current March lows at 62.38/61.39 would confirm such a top.”

“Above the 62.38/61.39 levels the five-month support line can be spotted at 63.83 and below the 59.46 February 12 low.”  

“Only an unexpected rally to above the 71.95 September 2019 peak would target the April 2019 high at 75.60.”