Brent oil price analysis reveals ongoing downward pressure, testing the crucial support level at $87.67. Further examination of the chart suggests the completion of a bearish flag pattern, signaling potential for continued decline in upcoming sessions. However, positive signals from stochastic indicators may mitigate significant losses.
As a result of this technical contradiction, we opt to remain on the sidelines until a clearer signal for the next trend emerges. A break below the aforementioned support at $87.67 could lead to intraday losses, with the next significant level at $84.77. Conversely, surpassing the resistance at $88.55 is essential for resuming the primary bullish trend, targeting $91.35 and $92.35 levels subsequently.
Expected Trading Range:
- Support: $86.40
- Resistance: $89.50
Trend Forecast: Neutral
