Brent crude is caught between two opposing forces right now. On the one hand, the market is swimming in fuel since the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have taken their foot off the brake with production. However, global demand isn't stepping up to the plate. Most traders think that prices are headed lower into 2026, and the daily chart shows a classic descending wedge—typically a bearish signal.
Still, there is the other side of the coin: the aforementioned wedge is sitting right on top of a major floor at $60 per barrel. This level became the yearly low in April following Donald Trump's comments and has only been tested once since then, in mid-October. If the current macroeconomic gloom and doom continues, $60 will likely throw in the towel. Anyway, it might not go down without a fight in the near future. The threshold has enough strength to potentially springboard prices much higher. A look at the daily Brent chart shows all the old bearish gaps have been filled—no clear road map below $60 is witnessed. Nevertheless, an open gap hanging above at $75.50 is still in play. If quotes bounce off $60, such a price discrepancy is a clear finish line.
This makes a trade here pretty interesting from a risk-reward perspective. A tight stop can be placed just under the $60 support level to keep risks on a short leash.
The ultimate recommendation is to buy Brent crude. Profits are taken at $75.5. Stop loss is set at $55.0.
Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
