In today's technical analysis, I would like to focus on Brent crude oil, which is currently under significant bearish pressure. The general perception surrounding Brent remains negative, and the technical situation only reinforces that outlook.
What we observe on the chart is a classic sequence of bearish patterns. Initially, Brent was in a clear downtrend. Following this, the price attempted a bullish correction, shaping a wedge pattern marked with red lines. However, this correction failed, and Brent escaped from the wedge to the downside — a strong bearish signal.
After the wedge breakout, the price entered a short period of sideways consolidation, forming a rectangle marked with blue lines. Consolidation phases often signal indecision, but the market quickly resolved this by breaking lower again. The price escaped from the rectangle to the downside and then executed a textbook bearish retest: it tested the lower boundary of the rectangle — which previously served as support — and confirmed it as new resistance. The retest was successful for the sellers, and Brent continued its slide lower.
At this point, Brent has confirmed bearish breakouts from two major patterns: the wedge and the rectangle. With sentiment firmly negative, the natural target lies significantly lower, around the lows recorded in April. Unless buyers stage a surprising recovery, Brent remains vulnerable to further declines.