Looking at the technical picture of Brent crude oil on our 4-hour chart, we can see that currently the commodity is trading below a steep short-term downside resistance line taken from the high of November 10th. The price is also near the 80.83 hurdle, which is the current lowest point of November. Although Brent oil is showing willingness to move lower, we would prefer to wait for a break below that hurdle first, in order to get comfortable with lower areas.
If that drop happens and Brent oil moves below 80.83, this will confirm a forthcoming lower low, potentially opening the door towards lower areas. The commodity may drift to the 79.58 obstacle, marked by the low of October 7th, where a temporary hold-up might occur. However, if the selling pressure remains strong, the price could continue sliding, possibly aiming for the 78.24 level, marked by the lowest point of October.
The RSI and the MACD are currently pointing lower. In addition to that, the RSI sits below 50 and the MACD continues to run below zero and the trigger line. The two indicators show negative price momentum, which supports the above-discussed scenario.
Alternatively, if the price breaks above the aforementioned downside line and then climbs above the 83.10 barrier, marked by the high of November 12th, that could attract a few more buyers into the game. Brent oil might then travel to the 83.82 obstacle, or even to the 84.68 territory, which is marked near an intraday swing high of November 9th and an intraday swing low of November 10th. If the buying doesn’t stop there, the next possible target could be the 85.58 level, marked by an intraday swing high of November 10th. Around there the commodity may test a short-term tentative downside resistance line drawn from the high of October 25th, which could provide an additional hold-up.
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