Technical Analysis:
Brent crude oil is trading near 71.67, a key resistance level that aligns with the 23.6% Fibonacci retracement of the recent downtrend from 73.60 to 70.00. This area has consistently acted as a cap on upward momentum over the past few sessions. The Bollinger Bands indicate tightening volatility, as prices approach the upper band, suggesting an impending decisive move.
The Relative Strength Index (RSI), currently at 55, signals mild bullish momentum but hasn’t yet entered overbought territory, leaving room for additional upside. The MACD histogram continues to trend upward, with the signal line crossing above zero, hinting at fading bearish control.
Beyond 71.67, the next resistance levels lie at 72.20, corresponding to the 38.2% Fibonacci retracement, and 72.75, a prior swing high. On the flip side, immediate support is seen at 71.00, followed by 70.50, where a cluster of recent lows and the lower Bollinger Band align.
The Average True Range (ATR) shows slightly declining volatility, which suggests that a sharp move could be in the cards once the current consolidation resolves.
Key Levels to Watch:
- Support: 71.00, 70.50
- Resistance: 71.67, 72.20
Volume and Sentiment:
📊 Volume has remained subdued, reflecting caution among market participants. A clear break above or below current levels will likely see a surge in trading activity, setting the tone for the next directional move.
Outlook:
The current setup paints a mixed picture, with bullish indicators gaining traction but resistance at 71.67 proving tough to break. Watch for signals of increased volume and momentum for confirmation of the next trend direction.
Fundamental Analysis:
Brent crude remains influenced by shifting global dynamics, including the balance between demand recovery in major economies and ongoing geopolitical uncertainties impacting supply chains. As traders await key economic reports and OPEC+ updates, sentiment could shift quickly, adding to oil price volatility.
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