Brent oil price has sustained its upward trajectory in recent sessions, nearing the 83.00 barrier. However, upon closer examination of the chart, it becomes evident that the recent market movements are confined within a minor bullish channel. This channel is perceived as forming a bearish flag pattern, with the price currently testing the support line of this pattern. A breach of the existing support is likely to activate the negative implications of the mentioned pattern, prompting the price to resume its corrective bearish trend, targeting the 77.44 areas in the near term.
Hence, expectations point towards further declines in the forthcoming sessions, supported by the negative signals emanating from technical indicators. It’s crucial to note that the price’s consolidation around the 81.00 level against the prevailing negative pressure would negate the bearish scenario, steering the price towards recovery.
The envisaged trading range for today is positioned between support at 79.40 and resistance at 82.40.
Anticipated Trend for Today: Bearish
