Oil Technical Analysis: Corrective rally from the July 18 low of $71.21 may have run its course

• The Brent oil hourly chart shows a bear flag pattern, meaning the corrective rally from the July 18 low of $71.21 has likely ended.
• Still, the bears are cautioned against being too ambitious as the 100-hour moving average (MA) is holding above the 200-hour MA, indicating the path of least resistance is to the upside.

Hourly chart

Current Price: $74.26

Daily High: $74.38

Daily Low: $74.16

Trend: Cautiously bearish

Resistance

R1: $74.38 (resistance on the hourly chart)

R2: $74.83 (July 27 high resistance)

R3: $75.00 (psychological hurdle)

Support

S1: $74.11 (support on the hourly chart)

S2: $73.96 (100-day MA)

S3: $73.27 (200-hour MA)