The hourly (H1) Brent crude chart tells a compelling story of a market in transition. After peaking at $95.50 in late July, the asset has finally found its footing and is now staging a recovery. The sell‑off reached its breaking point on August 5, when prices slammed into a critical psychological and historical floor at $77.10. What followed was a textbook V‑shaped reversal—a powerful signal that supply and demand had tipped decisively in favor of buyers, triggering a wave of short covering that caught bears off guard.
In mid‑August, Brent is hovering around $86.04, a pivotal crossroads that will likely determine the next stage of the journey. The structure suggests that bulls are steadily regaining control. But can they sustain the momentum?
This move appears to be more than just a bounce; it seems to be the beginning of a new bullish cycle. The impulsive rally from $77.10 to the local ceiling near $88.60 has already shattered the bearish structure that had dominated the market for weeks. This is a significant technical development. The current consolidation near $86.00 is a natural breather after such a powerful rally—a period of strength accumulation. If buyers manage to defend this level, the pair will print a classic "higher low" pattern, reinforcing the bullish case.
A firm hourly close above $86.00 would pave the way for a retest of the recent peak at $88.60. If this barrier gives way, the next major hurdle for bulls would be the formidable supply zone stretching from $90.90 to $92.05.
The ultimate recommendation is to buy Brent crude. Lock in profits at $88.60. Place Stop Loss at $84.50.
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 you to enter 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.
