Brent oil Technical Analysis: Stuck in a pennant pattern

• Brent oil has charted a pennant pattern on the hourly chart. An upside break would signal a continuation of the rally from the low of $82.52 and may yield a break above the recent high of $85.42.
• The stacking order of the 50-hour exponential moving average (EMA), above the 100-hour EMA, above the 200-hour EMA, indicates the path of least resistance is on the higher side. The hourly chart relative strength index (RSI) has regained bullish bias and is again trending north. As a result, oil could see a pennant breakout in the next few hours.
• The ascending 10-day EMA of $82.50 could come into play if the pennant is breached to the downside.

Hourly Chart

Current Price: $84.91

Daily High: $84.94

Daily Low: $84.59

Trend: Bull breakout likely

Resistance

R1: $85.00 (psychological hurdle)

R2: $85.42 (Oct. 1 high)

R3: $86.00 (zero level)

Support

S1: $84.35 (previous day's low)

S2: $83.85 (bullish 5-day EMA)

S3: $82.50 (ascending 10-day EMA)