Technical analysis for Brent Crude Oil, the price broke out on the weekly and the daily charts, a signal for further upside potential. The next target for the latest bullish run on the daily chart is the 2.272 FIB extension at 94.00$ and the 2.618 FIB extension at 97.80$. On the monthly chart, the 0.618 FIB retracement is at 97.00$, which is also a target for the bullish run. However, the current breakout looks a bit weak, and the price is within a resistance zone between 88.50 – 89.50$. Therefore, we need to see the Brent oil trading and holding above 89.50$ to confirm the bullish breakout and clear the way for a run toward 97.00$.
Looking at the weekly chart, the price of Brent Crude Oil reached and exceeded the second target of the bullish wave, the 1.618 FIB extension at 85.80$. The third target of the bullish wave on the weekly chart is the 2.272 FIB extension at 106$.
However, on the daily chart, the price of Brent oil formed a tweezers top, RSI sells signal, and Stochastic RSI bearish divergence, which is a signal for a pullback. If the price break below the Friday low at 85.69, it will open the door for a bearish run. The first for this pullback is the 1.272 FIB extension on the four-hour chart at 83.45. The second target is the 1.618 FIB extension at 82.10, and the third target is the 0.382 FIB retracement on the daily chart at 81.80.