Oil Technical Analysis: Brent defends 50-day EMA despite pennant breakdown

• Brent suffered a pennant breakdown yesterday, signaling a continuation of the sell-off from the high of $85.08, still, the bears have not been able to keep prices below $80.00.
• More importantly, brent defended 50-day exponential moving average (EMA) support yesterday, despite the pennant breakdown.
• As a result, a minor bounce to $81.00 could be in the offing and only a daily close below the 50-day EMA of $79.47 would revive the bearish view.

4-hour Chart

Daily Chart

Current Price: $80.13

Daily High: $80.29

Daily Low: $79.88

Trend: Bullish

Resistance

R1: $80.78 (5-day EMA)

R2: $81.41 (10-day EMA)

R3: $81.83 (previous day's high)

Support

S1: 80.00 (psychological support)

S2: $79.47 (50-day EMA)

S3: $78.55 (50% Fib R of $70.33/$86.71)