Brent Oil - Consecutive Doji candles, what next?

The Brent oil daily chart shows consecutive Doji candles around critical support of $48.03 (23.6% Fib R of June 2014 high - Jan 2016 low), signalling the sell-off from the recent high of $54.63 may have run out of steam. 

Doji candles are transitional patterns, suggesting indecisions in the market and a bullish or bearish bias depends on the preceding price action/confirmation. 

API build weighs over oil prices

Brent remains under pressure around $48.25/barrel. Prices dropped from a high of $48.79 in the overnight trade after the American Petroleum Institute (API) reported a build of 2.75 million barrels in US oil inventories. Markets were expecting a draw of 2.7 million barrels for the week ending June 9.  Gasoline stocks climbed 1.794 million barrels, while the distillate inventories fell this week by 1.451 million barrels. 

The bearish inventory data ensures there is no ‘bullish follow through’ to the back-to-back Doji candles seen on the daily chart. However, things might change later today if the US government reports a big draw in the oil inventories. 

Brent Technical Levels

A break above $48.99 (June 2 low) would open up upside towards $49.75 (Mar 22 low). On the lower side, support is seen at $48.03 (23.6% Fib R of June 2014 high - Jan 2016 low) and $47.41 (June 9 low).