Oil prices have been under tremendous pressure over recent weeks, as fears over weak global consumption and supply issues spook investors.
Brent oil price technical analysis shows that more weakness towards the $49.00 level remains possible while price trades below the $56.20 level.
Brent Oil medium-term price trend
Brent oil price analysis shows that sellers are in control over the medium term while price trades below the $62.00 resistance area.
After reaching the $71.00 level in January, Brent oil prices are now trading down by around 20 per cent and remain vulnerable to more losses.
The daily time frame shows that a bearish head-and-shoulders pattern breakout has been triggered.
The size of the bearish pattern is indicating an upcoming decline in Brent oil prices towards the $40.00 level.
Furthermore, the 50-day moving average has crossed over the 200-day moving average, signalling more losses ahead for Brent oil price.
Brent oil short-term price trend
Brent oil price technical analysis highlights that the short-term bearish trend is strong while price trades under the $55.45 level.
The lower time frames are currently showing that a small head-and-shoulders pattern has been activated, following the recent move below the $60.00 level.
Traders should also be aware that the recent bounce from the $53.00 area may only be temporary, as the pattern is still pointing to more downside for Brent oil.
Looking at the size of the pattern, the overall downside target would take Brent oil prices towards the $49.00 support level.
Brent oil technical summary
Brent oil price technical analysis shows that a major bearish breakout has occurred since the price broke under the $60.00 level. Further weakness towards the $49.00 level still seems possible.