Brent technical analysis: Breakout seen on 4H favors test of $72.00

• Brent bounced up sharply from key support levels on Monday. 
• The 4-hour chart is now reporting falling wedge breakout. 

Having bounced up sharply from the confluence of key moving average lines on Monday, Brent Oil is now looking north toward $72.00.

The US-China trade-led risk-off had pushed the black gold down by more than 2% in the Asian session on Monday. The sellers, however, ran out of steam near $69.11 - a level where the 50-day and 200-day moving averages were located, allowing a bounce to $71.78.

In the process, Brent confirmed a falling wedge breakout on the 4-hour chart - a confirmation the pullback from the recent highs above $75.50 has ended. Further, the 4-hour chart is now reporting a double bottom breakout and is biased bullish above 50.00.

As a result, prices look set to test the 4-hour chart 100-MA, currently located at $72.00. Further gains, however, may not be seen as the downward sloping 10-day MA is located at $71.92.

4-hour chart

Trend: Bullish

Pivot points