Amid the wild swings rocking the markets right now, Brent crude has dramatically knocked out two key technical targets that popped up last week. First, it powered through the stubborn resistance zone between $85.0 and $86.0. Once breached, prices didn't even bother pausing for a retest. Instead, they blasted higher only to pull back sharply to around $94.8. Then came this week's eye-popping opening gap, leaving a massive void on the chart. Its lower edge turned out to be the second target, and yesterday, quotes sliced right through it. To top it off, the initial breakout milestone at $86.6 got decisively closed as well.
After all this rollercoaster drama, Brent crude has established new levels that cry out for a retest—most notably the upper boundary of the $110.0 gap looming overhead. As tempting as it might be to buy there, it is quite a risky deal right now. A smarter play is to sell from around that zone and aim for a downside ride toward $95.0. As the hottest phase of Middle Eastern tensions starts to cool off and lose some steam, expect ferocious oil volatility to dial back too. The super-wide trading band stretching from roughly $85 to $110 per barrel is likely to gradually tighten, eventually settling into a narrower, calmer range.
The ultimate recommendation is to sell Brent crude at $110.0. Place Take Profit at $95.0. Set Stop Loss at $120.0.
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.
