Brent Crude Oil Technical Analysis – Daily Timeframe
As observed in the daily chart for Brent crude oil, the price of this commodity is fluctuating within a defined descending channel. The $85 price range, coinciding with the top of the descending channel and a strong supply zone, acts as a key resistance level for traders. The convergence of these two factors significantly increases the likelihood of a negative price reaction in this area. If the price reaches this level and fails to break through, we can expect a price correction towards the lower of the descending channel.
Technical Analysis of Brent Crude Oil – 4-Hour Timeframe
As observed in the 4-hour oil chart, a strong demand order block has formed around the $76 price level. This indicates the presence of strong buyers at this price, reflecting their willingness to purchase oil within this range. Following this strong demand, the price of oil has experienced a significant rebound upward. If the next resistance is broken and the price stabilizes above it, we can expect oil to move toward the upper boundary of the daily descending channel. This would suggest a short-term trend reversal and increase the likelihood of a continued upward trend in the future.
Technical Analysis of Brent Crude Oil – 30-Minute Time Frame
The price of oil, after breaking out of a descending channel, has experienced significant growth. However, it has now reached a strong supply zone that may act as a serious obstacle to the continuation of the upward trend. The presence of a robust supply zone at this level increases the likelihood of a downward price correction. Nevertheless, the demand zone around $77 could serve as a strong support level and provide buyers with an opportunity to re-enter the market. If a pullback towards this demand zone occurs and the price stabilizes above it, oil may resume its upward trend and re-enter a longer-term ascending channel.