Brent Crude Oil at a Key Inflection Point: Reversal or Continuation?
Brent crude oil prices have staged a strong rebound in recent weeks, climbing sharply as geopolitical tensions in the Middle East persist. As of now, oil is testing a key technical zone near US$82, where a major horizontal resistance aligns with the upper boundary of a long-term descending channel.
This level is pivotal from a charting perspective.
Technical Outlook
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US$82 Resistance Area: This zone marks both a key swing high and the downtrend resistance line that has defined the broader bearish structure since mid-2022.
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Potential Reversal Signal: A convincing breakout above this level would mark a significant technical shift, breaking the descending channel and potentially paving the way for a move toward the US$95 region — a level not seen since Q3 2023.
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Bearish Continuation Scenario: On the flip side, a failure to clear this resistance may reinforce the current downtrend, with price likely to resume its descent and re-enter the lower bounds of the channel.
Macro Context
The backdrop of heightened Middle East tensions, coupled with supply concerns, has been a key driver of this rally. Any de-escalation or easing in risk sentiment could also influence whether Brent sustains this move or retraces.
Strategy Consideration
This is a clear technical inflection point. Traders may consider tightening trailing stops or scaling in tactically on a confirmed breakout. Investors should watch for fundamental confirmation alongside price structure.
Disclaimers Apply