Oil markets are now in full-blown panic mode. Brent crude is whipsawing wildly as the Middle East conflict takes a dangerous turn—Iran claims to have full control over the Strait of Hormuz, the narrow chokepoint through which 20% of the global fuel supply passes every single day. With this strategic waterway effectively shut down, the dominoes are falling fast in the region. Iraq has already halted production at its largest oil fields, and Saudi Arabia has idled one of its massive refineries. Across the energy world, everyone is holding their breath.
The moves in Brent have been anything but subtle. First came the surge—two back-to-back sessions where crude shot up more than 5%–6%. Then quotes hit a wall. The correction struck just as hard, with prices plunging nearly 8% from local highs in a matter of hours. This selloff drove fuel back into familiar territory: the $78.50–$80 zone that had long acted as stubborn resistance. But here's where it gets interesting. Instead of crumbling, the market bought the dip. Heavy trading volumes swept in at the mentioned range, turning what could have been a breakdown into a textbook bounce. The message is clear: major players see the value here, and they are willing to defend it.
Therefore, technicals are lining up for a long play in Brent. The $78.50–$80 threshold has been put to the test—and it passed. Not only did it absorb the selling pressure, but it also triggered a volume-backed rebound that turned former resistance into new support. In other words, this is not just a bounce, it is a classic bullish flip. With geopolitical tensions still simmering and no resolution in sight, opening long positions at current levels—while keeping a protective order just below $78.50—offers a risk-reward profile that is hard to ignore.
The overall recommendation:
— Buy Brent crude at the current price, targeting $88 per barrel within a week.
— In order to manage risk if the market moves against us, set a Stop Loss order just below the support zone at $78.50.
This content is for informational purposes only and is not intended to be investing advice.
