Brent oil prices maintain its trajectory toward previously established technical targets at $58 and $47 per barrel levels. The target at the level of $58 per barrel was originally set in January 2021, while the return to the level of $47 was laid down in August 2020. Over the past five years, prices have undergone an extended consolidation phase within a narrowing triangle pattern, with the base forming around the $70 per barrel level.
The market took considerable time to gather enough momentum for a bearish breakout below this strong support level. However, consolidation alone wasn’t enough—it needed a trigger to spark a sharp breakdown. That catalyst came when Trump decided to overhaul the global trade system. Yet, Trump is merely accelerating oil’s move toward its technical targets, levels the market had defined years before he even entered the picture.
While Brent crude could still drop toward $47 or $58, a rebound to the broken support at $68 per barrel remains in play. Both $47 and $68 are key targets, and the real uncertainty lies in the path prices will take. Will we see a retest of $68 first, followed by a drop to $47 and $58? Or will prices decline to $58 first, then build momentum for a rebound toward $68? Or could the sell−off continue straight to $47? Out of all these possibilities, the most technically plausible scenario at the moment seems to be a further downside push to $58 per barrel for Brent.
The overall recommendation is to sell Brent oil.
Profits should be taken at the level of $58 per barrel. A Stop loss could be set at the level of $63.
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.
