Brent oil prices experienced significant downward pressure yesterday, breaching the $81.40 level and closing below it. This move suggests a potential return to a bearish trend, as indicated by the chart patterns. However, the price is encountering robust support at the previously breached resistance level of the bearish channel. Additionally, stochastic indicators are showing positive signals, which could drive a recovery and initiate a bullish trend on an intraday basis.
Given the current technical contradictions, it is advisable to adopt a cautious approach until clearer directional signals emerge. A break below the $80.75 mark could lead to further declines, potentially reaching $79.70. Conversely, if the price surpasses the $81.40 resistance, a recovery is possible, with targets set at $82.74 and subsequently $84.10 in the near term.
Today’s anticipated trading range is between $79.20 and $82.74.
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