On the hourly timeframe, Brent oil has formed a clear short-term bearish pattern. The previously broken technical resistance at 73.5 now appears to be a new target to test. Two days ago, the price surged to the $75 per barrel mark with three powerful hourly candles, after which the upward momentum stalled, and the price began to consolidate, suggesting a potential downward correction.
Several fundamental factors both support and contradict a medium-term decline in oil prices. The slowdown in global economic growth and the current oversupply of oil relative to demand support the downward move.
A significant escalation of tensions surrounding Iran and potential secondary sanctions against Russia’s energy sector could provide a new upward boost to oil prices. These factors could reduce the volume of oil on the world market, leading to a price increase. Conflict with Iran would also threaten oil shipping lanes in the Middle East.
Regardless of how these events unfold, the short-term technical pattern suggests a high probability of a correction to $73.50
The overall recommendation is to sell Brent oil.
Profits should be taken at the level of 73.5. A Stop loss could be set at the level of 75.0.
The volume of the opened position should be set in such a way that the value of a possible loss, fixed with the help of a protective Stop loss order, is no more than 1% of your deposit funds.
This content is for informational purposes only and is not intended to be investing advice.
