Brent crude is holding within descending channel on higher timeframes

A long-term global view of Brent crude quotes reveals a broad descending channel spanning the past 15 years. Within this channel, the market has experienced at least four major price collapses, each ranging from $40 to $110 per barrel over short periods. There have also been several other sharp declines, albeit less extreme. Although oil is considered to be highly sensitive to geopolitical tensions, often spiking on risk premiums, historical price dynamics demonstrate that it can also plummet rapidly due to various factors. Beyond the 15-year downtrend channel, a nested 3-year descending channel can be seen on lower timeframes. If Brent continues to follow this technical pattern, the next likely downside target is the $40–$45 per barrel zone. This area has traditionally served as a key support and resistance level, triggering reversals in 1990, 2000, 2003, 2008, 2014, 2017, and 2020. Given the technical analysis premise that price behavior is cyclical, this zone is likely to be retested.

The following recommendation may come into play: 

Sell Brent with a Take Profit order set at $45 per barrel and Stop Loss placed at $94,0.

This is a long-term position, so if it is opened on instruments with leverage, a negative swap will accumulate. If you are not prepared to cover the ongoing swap costs, it is better to skip the deal.

The volume of your open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance doesn’t allow opening a position of this size, please avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.