The Brent oil price exhibited a significant decline at the start of the trading day, leading to a breach of the support line for the bullish channel. The price now hovers below this support, raising the possibility of a new bearish correction. This correction is likely to target levels starting from 90.30 and may extend to 86.75 if the prior level is breached.
However, there are conflicting indicators to consider. The price is currently supported by a minor bullish channel and the EMA50, which is positioned to add further strength. Additionally, the stochastic indicator has entered oversold territory, which may aid in a potential return to the primary bullish trend.
Given the contradictory signals from these technical indicators, it is advisable to exercise caution and wait for the price to confirm its next direction. Two key levels to monitor are 91.40 on the downside and 92.85 on the upside. A breakthrough of the resistance at 92.85 could initiate a bullish phase, targeting levels around 95.00 and 96.05. Conversely, breaking the support at 91.40 may set the stage for the aforementioned bearish targets.
The anticipated trading range for today is bounded by support at 89.90 and resistance at 93.40. With these mixed signals, the market appears to be in a neutral state for the time being.
