The 4-hour (H4) Brent crude chart shows that a phase of strong upward momentum is clearly over. After reaching a local high at $106.15, prices underwent a natural correction.
A classic retest of the previously breached level is a key technical sign that will help map out the medium-term price trajectory. Let’s take another look at the chart: a horizontal blue line marks a key historical resistance threshold at $95.80. This barrier had previously kept buyers at bay, but during the recent rally it was broken upward on high volume. What does this mean from a technical perspective? Broken resistance tends to transform into a “mirror” support level.
The “retest” pattern plays out as follows: after hitting a peak, bulls began locking in profits, which set off a wave of selling. Oil prices are now drifting from top to bottom toward $95.80 to face buyers who have dug in there.
This process is par for the course for two reasons:
Relieving overbought conditions. Volume indicators and oscillators blow off steam following a prolonged rally.
Seeking liquidity. Large institutional players who missed the first impulse place their buy limit orders right in the zone of strong “mirror” support—a case of striking while the iron is hot, but on their own terms.
Based on the rules of wave structure and chart analysis, the baseline scenario points to a decline toward the target zone of $95.80–$96.00. Price behavior in this area will be the litmus test of the future trend.
The overall recommendation is to sell Brent crude. Profits should be taken at $95.80. Stop Loss could be set at $109.00.
Always size the position so that your potential loss (protected by a Stop Loss order) is no more than 1% of your account balance. If you can’t open a position that meets such a risk criterion, it’s safer to skip this trade and wait for a better, lower-risk opportunity.
This content is for informational purposes only and is not intended to be investing advice.
