Yesterday's trading in energy markets showed investors desperately clinging to any hopeful signals that might indicate a recovery in severely falling commodity prices—including Brent crude.
Even minor news catalysts triggered significant bullish impulses, though these consistently retreated amid the prevailing negative sentiment. The technical picture now suggests Brent crude appears poised to retest its broken support at $68 per barrel, a level that is likely to serve as a medium-term resistance in the future. Even if the trade war tensions persist and major producers keep ramping up output, exchange pricing could push prices higher to fill the gap in the order book. Commodities rarely sustain price gaps. Historical futures data shows they almost always close eventually. It’s just a matter of time.
The most thinly-traded zone currently sits between $65−$72 per barrel. Ideally, prices should retest the $72 resistance level, but given the subdued market sentiment, such a scenario appears unlikely. Instead, $68 per barrel stands out as a technically feasible target, supported by price action patterns, even amid ongoing macroeconomic headwinds.
The overall recommendation is to keep buying Brent oil.
Profits should be taken at the level of $68 per barrel. A Stop loss could be set at the level of $57.
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.
