Brent technical analysis: Bearish lower highs favor a drop to fresh five-month low

• Brent oil’s daily chart shows as bearish lower highs pattern. 
• Prices look set to print fresh five-month lows below $69.46 in the next day or two. 

Brent oil faced selling pressure on Wednesday, as expected, and fell more than 4% to hit a low of $59.60. 

With the sharp pullback from Tuesday’s high of $64.08, the black gold has established yet another bearish lower high. 

Notably, that is the third bearish lower high of the last six weeks and so the path of least resistance is to the downside. 

Prices, therefore, risk printing five-month lows below the June 5 low of $59.46.

The outlook will remain bearish as long as the price is held below $64.08. As of writing, a barrel of Brent is changing hands at $60.14. 

Daily chart

Trend: Bearish

Pivot levels