Brent crude oil prices experienced a significant rally yesterday, reaching $85.80, and breaking through the resistance of a corrective bearish channel as trading commenced today. This movement suggests a potential halt in the ongoing bearish correction and a possible return to an upward trajectory. However, stochastic indicators are showing signs of being overbought, which could lead to a price decline in the coming sessions.
Given these mixed signals, it is advisable to adopt a cautious approach until a clearer trend emerges. If Brent oil prices surpass $85.80, further gains could be expected, potentially driving prices towards $86.95 and $88.50 in subsequent movements. Conversely, a drop below $85.20 would indicate a return to a bearish correction, with targets set at $84.10 and $82.74 in the near term.
Today’s anticipated trading range is set between a support level of $84.30 and a resistance level of $87.40.
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