Brent crude oil prices experienced significant downward pressure yesterday, falling below the $73.90 mark and reaching as low as $72.75, suggesting the potential for further declines in the short term. However, early trading today has seen some positive movement, driven by favorable stochastic indicators, which may signal a possible attempt to recover and re-enter a bullish trend. In the near term, the price is targeting a retest of the $73.90 level.
The conflicting technical signals make it prudent for traders to adopt a wait-and-see approach until clearer directional cues emerge. A sustained rally that pushes Brent above the $73.90 threshold could signal a return to bullish momentum, with potential gains extending toward the $75.36 area. Conversely, a break below the $72.85 mark would likely lead to further downward pressure, with potential targets including $72.06 and $71.20 if the decline continues past these levels.
For today, the expected trading range for Brent crude is between support at $72.00 and resistance at $75.00.
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