Brent crude approaches key resistance at $70.8 per barrel

Heightened geopolitical tensions continue to act as a key driver for Brent crude prices. The oil market remains highly susceptible to any potential supply disruptions, and current conditions are a textbook example of this dynamic. When the situation heats up even slightly, quotes are ready to rush upward in the blink of an eye—a pattern we've observed repeatedly. The Strait of Hormuz is today's burning issue, as it accounts for about 20% of global crude deliveries.

The market has already priced in elevated geopolitical risks, as evidenced by the recent rebound from the $67 support and the subsequent surge to the $70.8 resistance. This level is especially important from a technical perspective: a clear breakout above it could pave the way for a move toward $75.

Momentum indicators confirm the potential upside in Brent. The Relative Strength Index (RSI) has recently breached the 50 threshold and keeps rising steadily, exiting neutral territory and signaling bullish momentum. The Moving Average Convergence/Divergence (MACD) indicator has also entered the positive zone, pointing to accelerating upward movement and growing buying interest.

The overall recommendation is to buy Brent crude at current levels with $75 per barrel in view. Place Stop loss at $69.