Brent Crude Oil prices are trading within a long-term downward trend, forming a corresponding channel. Last week, quotes reached May lows near 58.55 but failed to break lower and corrected upward. The price is currently close to 59.37 (Murray level [–1/8]); a firm move below this level would confirm further downside toward 56.25 (Murray level [–2/8]) and 53.12 (Murray level [–2/8], D1). For bulls, the key resistance zone is seen at 64.00–65.62 (the middle Bollinger Band and Murray level [1/8]). A breakout above this area would allow prices to exit the channel through its upper boundary and rise toward 71.87 (Murray level [3/8]) and 75.00 (Murray level [4/8]). However, this scenario currently appears less likely in the near term.
Technical indicators continue to point to the persistence of the downtrend: the Bollinger Bands are directed lower, the MACD is increasing in negative territory, and the Stochastic oscillator is approaching oversold levels. This does not rule out a corrective rebound, although its potential appears limited.
Support and Resistance Levels
Resistance levels: 65.62, 71.87, 75.00.
Support levels: 59.37, 56.25, 53.12.
Trading Scenarios and Brent Crude Oil Forecast
Short positions should be considered below the 59.37 level with targets at 56.25 and 53.12, and a stop-loss at 61.70. Time horizon: 5–7 days.
Long positions can be opened above the 65.62 level with targets at 71.87 and 75.00, and a stop-loss at 62.80.
Scenario
| Timeframe |
Weekly |
| Recommendation |
SELL STOP |
| Entry point |
59.35 |
| Take Profit |
56.25, 53.12 |
| Stop Loss |
61.70 |
| Key levels |
53.12, 56.25, 59.37, 65.62, 71.87, 75.00 |
Alternative Scenario
| Recommendation |
BUY STOP |
| Entry point |
65.65 |
| Take Profit |
71.87, 75.00 |
| Stop Loss |
62.80 |
| Key levels |
53.12, 56.25, 59.37, 65.62, 71.87, 75.00 |
Forex Analyst & Educator
Sagar Dua has been active in financial markets since his college years. He began developing skills in technical and fundamental analysis in 2018 while pursuing a postgraduate degree in Commerce. Later, he worked as an Assistant Professor at a public university and now focuses on mentoring beginner traders and investors through seminars and webinars on the Forex market, combining financial expertise with motivational speaking.
