Today, we revisit Brent Oil, which is having a strong week so far. Monday saw the market open with a bullish gap, followed by a positive trading session, and Tuesday has continued the momentum with further gains during the European session. This marks two consecutive bullish days, indicating renewed short-term optimism.
However, today's price action has brought Brent to a key resistance level around $77 per barrel, marked in green on the chart. The price has respected this resistance, leading to a bounce and a potential opportunity for traders to take profits after the recent upswing.
In terms of the long-term view, sentiment remains negative as long as the price stays below the green resistance. A breakout above this level, confirmed by a daily close, would generate a strong buy signal and could trigger further upside momentum.
On the downside, the red support line, corresponding to the lows from February 4th and 6th, is crucial. A break below this support would create a powerful long-term sell signal, indicating the possibility of a deeper correction.
Traders should watch closely how Brent reacts around the $77 resistance and the red support to determine the next major move in the market.