Between Resistance and Support: A Technical Insight into Brent Oil’s Current Movements

Returning to the topic of Brent Oil in today’s technical analysis, we have been frequently discussing oil due to its noteworthy respect for price action principles and dynamic movement. Currently, we are witnessing an upswing; however, the conclusion of Monday saw a decline. How significant was Monday’s drop? If we look at the chart, we notice that the price touched a mid-term downtrend line. This line connects the tops from the end of May and other lower highs throughout June. The price bounced off this resistance, indicating a bearish sentiment.

As a result, there was a descent towards the $71.6 mark, absolutely crucial long-term support for oil, highlighted in yellow on the chart. Currently, the price is climbing higher, attempting to breach the red line again, but the outcome is uncertain. Even if buyers manage to overcome this resistance, a formidable horizontal resistance awaits at $77.6, the 38.2 Fibonacci level, illustrated with a blue color on the chart.

As long as we stay below that line, a buy signal cannot be confirmed. Only if the price ends the day above the blue area and the 38.2 Fibonacci level will we have a buy signal. Despite today’s increase, the sentiment remains negative. The bounce from Monday needs to be respected. As long as we remain beneath the red line, the sentiment for oil is bearish, and the possibility of a drop towards the yellow area becomes more likely.

Source: https://www.axiory.com/analytics/technical-analysis/between-resistance-and-support-a-technical-insight