Brent crude broke through a key resistance zone of $68–69 per barrel late last week. The bullish momentum was triggered by a sudden escalation of Middle East tensions amid the Iran-Israel conflict.
From a technical standpoint, after a sustained decline in oil prices driven by sluggish Chinese industrial activity and Trump-era tariff wars, Brent crude had left several unfilled price gaps above its June levels. These gaps previously served as targets for a corrective rally, and were abruptly closed within just two trading sessions.
Following this price correction, Brent crude is now forming new chart targets. The primary focus is the previously breached $68.50 level, which prices will likely retest, but as new support. This downward move may be driven by de-escalation in Middle East tensions. However, a retest of the local high at $78.50 per barrel isn’t ruled out. Regardless, the $68.50 target remains Brent’s primary objective for the next 3–5 weeks.
For OPEC+ members and OECD oil producers, current price levels are more attractive, prompting many to ramp up market supply. This is particularly critical for OPEC nations, which previously resorted to steep discounts to maintain market share and can now offset those losses. Additionally, most oil importers, facing ongoing uncertainty, are now likely to replenish strategic reserves, further bolstering demand.
The overall recommendation is to sell Brent oil.
Profits should be taken at the level of 68.5. A Stop loss could be set at the level of 85.0. 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.
