Brent’s bearish price RSI divergence seen on the daily chart is likely to keep bulls at the bay so long as prices do not see a day end closing above $49.81.
This coupled with rejection at 5-DMA and 10-DMA in Asia risks sending prices lower to support at $47.36, under which losses could be extended to $46.74.
However, bears should watch out for a break above $48.63 (this week’s high) as such a move would add credence to a rebound from weekly 5-MA seen yesterday and expose hurdle at $49.81.