Brent Oil Reclaims Key Levels, Signals Bullish Reversal

In today’s technical analysis, let’s focus on Brent oil, which is currently showcasing signs of a strong bullish reversal. For the past few months, Brent has been confined to a sideways trend, moving within a well-defined triangle pattern. However, significant developments at the end of the previous week brought notable changes to the chart.

Last week, the price broke below the lower black line of the triangle, escaping from the sideways trend to the downside. Initially, this looked like a bearish breakout, signaling potential continuation to lower levels. However, this move has now been invalidated, as Brent is reversing sharply. The price has reclaimed its position above the lower black line and is also trading above a short-term horizontal support marked in yellow.

This reversal transforms the sentiment into a positive one, as long as the price stays above these two critical levels. A day’s close above the black trendline and yellow horizontal support will provide confirmation for a proper buy signal on Brent, paving the way for further gains.

Caution is warranted, however, as this may still be a temporary comeback. It’s crucial to monitor the price action through the remainder of both the European and American sessions to validate the reversal. Should the price sustain this rebound, the bullish outlook on Brent will gain further credibility.

Source: https://www.axiory.com/analytics/technical-analysis/brent-oil-reclaims-key-levels-signals-bullish-reve