Brent Oil drops below the down trendline

Last week, Brent Oil broke a key resistance, the long-term down trendline (blue). A breakout of the down trendline is generally considered a positive signal that ends a bearish trend and starts a bullish reversal. However, this breakout was a false bullish breakout (green), which often signals a strong sell in the opposite direction. As the price has come back below the blue down trendline, the current sentiment is negative and indicates a bearish trend.

We are also currently inside the flag pattern (orange), and a breakout of the lower line of this formation would confirm a sell signal. This scenario is currently more probable.