Brent Oil Nears Breakout: Triangle Pattern Holds the Key

Brent Oil has been moving sideways for weeks, a trend that has tested the patience of traders. However, the technical setup suggests that this period of consolidation is nearing its end, with a breakout likely to occur soon.

The price of Brent Oil is confined within a symmetric triangle pattern, marked by black trend lines. This pattern indicates a narrowing range, signaling that a significant move is on the horizon. Adding to the tension is the presence of a key horizontal support at $72, marked with blue lines, which has held firm so far.

The direction of the breakout will determine the next major move:

• Bearish Scenario: A close below the lower black line and the $72 horizontal support would trigger a strong sell signal, opening the door for a deeper decline.
• Bullish Scenario: Conversely, a close above the upper black line would provide a signal to buy, with the immediate target being the red downtrend line, which has acted as resistance in the past.

Given the proximity to the apex of the triangle and the compression of price action, the breakout appears imminent. Traders should watch today’s closing levels closely to gauge the market’s next major move.

Source: https://www.axiory.com/analytics/technical-analysis/brent-oil-nears-breakout-triangle-pattern-holds-th