Oil Technical Analysis: Brent has eroded two month rising trendline

• Brent oil found acceptance below the trendline sloping upwards from the Aug. 16 low and Sept. 21 low in Asia, having witnessed a bear flag breakdown yesterday and fell to $81.39 - the lowest level since Sept. 28.
• The 14-day relative strength index (RSI) is threatening to drop below 50.00, in bearish territory, having breached the rising trendline.
• The 5-day and 10-day exponential moving averages (EMAs) have produced a bearish crossover.
• Brent looks set to test key support at $80.48 (50% Fib R of $70.33/$76.71), albeit after a minor bounce, as the 14-hour RSI has dipped into oversold territory, below 30.00.

Daily Chart

Current Price: $81.82

Daily High: $82.61

Daily Low: $81.39

Trend: Bearish

Resistance

R1: $82.35 (previous day's low)

R2: $82.69 (Oct. 8 low)

R3: $83.14 (5-day EMA + 10-day EMA)

Support

S1: $81.13 (Sept. 26 low)

S2: $80.48 (38.2% Fib R of $70.33/$76.71)

S3: $80.00 (psychological level)