Looks like we've got good oil / equities correlation because we can draw some good similarities in chart patterns between Brent / FTSE100 and S&P500 daily charts. Just like the other charts, we're testing the neckline of a Double Top formation on the daily chart and have bearish MACD and a downtrend in the RSI. Also note, that we have been having some good afternoon recoveries shown by a lot of long lower shadow candles, so be weary of any morning sell offs and remember to wait for a confirmation on the close, to avoid being chopped.
Important levels to watch out for are, a close below $106.75, and look for the follow through the next day. Erring on the cautious side, I would still wait for a close below the $106.00 to really be confident of the move down. $109.00/$109.50 may off some resistance on any upside move.
We can see that the 1hr chart is in a nice bearish channel but looks like there's some activity around the $106.75 level. The indicators are not giving us too much information on this timeframe either.
Charts sourced from IG Index
Important levels to watch out for are, a close below $106.75, and look for the follow through the next day. Erring on the cautious side, I would still wait for a close below the $106.00 to really be confident of the move down. $109.00/$109.50 may off some resistance on any upside move.
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