Over the past few sessions, Brent crude has been making headlines with its wild price swings. In fact, the market has become extremely volatile, with daily fluctuations of 10%–15% turning into the new norm.
Things kicked off with a firm foothold above the psychologically important $100 level—a clear signal that bulls were creeping back after the corrective slide to $85. Despite mounting pessimism over the unraveling situation in the Middle East, oil didn't just recover; instead, it charged higher, blasting to fresh local peaks in the $119–$120 zone. Notably, these thresholds mirror the highs from early March and now loom as a formidable resistance wall.
Flip to the technicals, and the picture gets even more interesting. A "double bottom" reversal pattern has flashed on the charts. Specifically, the price slammed into and bounced off the rock-solid support floor at $105 per barrel twice, screaming sustained buying demand and signaling that sellers are finally running out of steam after their downward rampage.
Adding to the case, the Relative Strength Index (RSI) piles on confirmation. It plunged into oversold territory (the panic zone) and then snapped back with conviction, parking comfortably above the 50-point signal line. The message is clear: the tide is turning. In other words, bulls are regaining the upper hand, while bears are losing their grip.
Given how deep the prior plunge was—peaking at nearly 13%—this double bottom setup has the potential to spark a fresh leg higher. According to the baseline playbook, the immediate upside target for oil is the key resistance at $115, a level that could serve as a launchpad if the breakout momentum holds.
The ultimate recommendation is to buy Brent crude at the current price, targeting $115 per barrel within one to two weeks. To manage risk, place a Stop Loss order just below the support level, or around $104.5, in case the market moves against us.
This content is for informational purposes only and is not intended to be investing advice.
