Underlying technical trend in Brent futures continues to point higher

The underlying trend for Brent crude oil futures continues to point higher despite its greater than 8% fall from their October highs, technical analysts said.

According to WebFG UK's chief technical analyst, Jose Maria Rodriguez, the bullish medium-term trend is still absolutely intact, although in the immediate short-term a 'test' of the lower part of the current upwards-sloping price channel may be on the cards - towards the $76.0 per barrel level.

That area of price support may be reinforced by Brent's 200-day moving average, he said, which as of Tuesday was to be found at roughly $73.70 a barrel.

To the upside, and on a longer-term view, the main levels of technical resistance were to be found at the 2018 highs, followed by the $88.50 per barrel mark, a level Brent last reached in June 2012.