Brent attacking trend line resistance, but likely to fade the spike

Brent oil is upbeat in early US session, eyeing falling trend line resistance

Daily Chart

brent oil.png

First attempt failed..prices tried chewing through the resistance at $40.45, but failed. Futures clocked a high of $40.55 and now trade around $40.35/barrel.

Purely going by the technicals, the uptick is a fresh opportunity to enter shorts for those who missed the bus yesterday.

hourly chart

brent hourly.png

Bearish Price-RSI divergence is quite clear. So the rally is likely to be met with fresh selling around the falling trend line resistance. Another failed attempt and prices are heading back to $39.50-39.00 levels.

Canadian dollar bulls should remain cautious as well

 

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