Oil Technical Analysis: Key trendline breached, immediate bull outlook neutralized

• Brent oil has breached the trending sloping upwards from the Aug. 15 low and Sept. 7 low, neutralizing the immediate bullish outlook, the hourly chart indicates.
• The hourly chart relative strength index (RSI) of 39.00 is biased toward the bears. Further, the 50-hour moving average (MA) is holding below the 100-hour MA, indicating the path of least resistance is to the downside.
• Over on the daily chart, oil has also fallen back inside the flag pattern.
• Brent could re-test support at $77.35 (Sept. 14 low). A close below that level would confirm a short-term bear reversal.

Hourly chart

Current Price: $77.70

Daily High: $77.94

Daily Low: $77.69

Trend: Bearish

Resistance

R1: $78.42 (Sept. 3 high)

R2: $79.00 (psychological level)

R3: $80.09 (Sept. 12 high

Support

S1: $77.35 (Sept. 14 low)

S2: $76.36 (38.2% Fib R of Aug. 15 low/Sept. 12 high)

S3: $75.67 (Sept. 6 low)