Brent Oil Chart Analysis: Promising Potential for a Reversal?

To begin with, we observe that Brent Oil is firmly entrenched in a downtrend, which was briefly interrupted by a bullish correction. This correction took the form of a wedge pattern, reaching a local peak with a false breakout above the 38.2% Fibonacci level. However, the bullish momentum abruptly came to an end yesterday with the breakdown of the lower boundary of the wedge, triggering a decisive and uninterrupted decline.

Despite the sharp drop, it eventually found support at a significant long-term level established in early May. Currently, we are witnessing a bounce, which holds great potential for the formation of a double bottom pattern, indicating a possible major reversal. However, it remains uncertain whether this bounce will materialize into a full-fledged reversal, as its fate is still being determined. The situation can be summarized as follows: a breakout of the yellow support will certainly serve as a buy signal, while a price climb back above the 23.6% Fibonacci level can confirm the formation of a double bottom and act as a signal to enter a long position.