Brent oil prices continued their upward movement yesterday, surpassing the $72.06 level and reaching the $73.00 barrier. However, the 50-period Exponential Moving Average (EMA50) now acts as a significant resistance, coupled with clear negative signals from the stochastic indicator. This combination suggests that Brent oil may experience negative pressure in the upcoming sessions.
The key level to watch is $72.06; if the price breaks below this support, it would confirm the start of a bearish wave. Initial downside targets would be at $71.15, with further potential for a decline toward the $70.00 mark.
Trading Outlook
The suggested bias for today is bearish, but if the price breaks above the $73.00 resistance, it could extend its gains, with the next target at $73.90.
Expected Trading Range: Between $71.40 (support) and $73.40 (resistance).
Trend Forecast: Bearish.
A bearish outlook is favored unless Brent oil surpasses $73.00, in which case the price may test higher levels.
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