Brent Technical Analysis: Upside favored after bullish hammer

Brent oil created a classic bullish hammer, invalidating the bearish case put forward by the lower highs on the 14-day relative strength index (RSI) and the Doji candle created on Wednesday. 

As a result, Brent could test the recent high of $68.68 and possibly break higher toward the 200-day moving average (MA) hurdle, currently at $69.71. The bullish crossover of the 50- and 100-day MAs confirmed on March 14 also indicates the path of least resistance is to the higher side. 

A bullish-to-bearish trend change would be confirmed if prices close below $66.56 (low of the bull hammer candle). At press time, Brent is changing hands at $68.20 per barrel. 

Daily chart

Trend: Bullish