Brent’s Bearish Plunge

By Tomasz Wisniewski|

Published: December 07 2023, 06:58 GMT+0

Brent’s Bearish Plunge

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In today’s technical spotlight, Brent oil demands attention due to its steep decline, reaching its lowest levels since early July. The charts reveal a significant narrative. Dominating the landscape is a large head and shoulders pattern, colored in lavender, which has been a guiding force in recent price movements. Interestingly, November’s chart featured an inverse head and shoulders formation, shown in blue with a red neckline.

However, what appeared as a bullish breakout from this pattern turned out to be a false signal, now highlighted in orange. This deceptive breakout has precipitated a substantial price drop, ushering in a bearish market sentiment. Given these developments, it seems increasingly likely that Brent oil prices may revisit the lows experienced in May and June, hovering just below the $72 mark. This level, marked in yellow on the chart, stands as a probable target in the current downward trajectory.

Given the high likelihood of reaching this point, traders and analysts alike should brace for further declines in the Brent oil market.