Brent Crude oil ran out of steam just short of the 200 daily Moving Average. Now trading around previous resistance, now support, at around 78.66.
RSI is still showing positive sentiment indicating higher oil prices after what is likely to be a correction.
If Brent trades back above the Cloud uptrend is likely to resume with a test of 83 resistance to follow.
However, the correction can take Brent oil down to the 0.618 retracement at 75.44 without jeopardizing the short-term uptrend. The 55 daily Moving Average will offer support.
A close below 75.00 will demolish the bullish picture.
If Brent breaks above last week’s peak around 81.70 it will have broken above its medium-term falling trendline (Weekly chart)
A close above 83 is likely to lead to a move to around 87-89.