Recent buying activity lifts Brent crude price up

Traders Union
All News
Commodities
Brent crude gains 1.01% to $74.42

Highlights

Brent crude fell sharply to $71.99 as increased Strait of Hormuz traffic eased supply disruption concerns.
Reduced supply and inflation risks tempered recent upward price pressures, shifting near-term sentiment and moderating demand worries.
Short- and medium-term technical signals are bullish, with Brent expected to consolidate in a $73.19–$75.65 range and a high probability of further gains.

Sentiment moderates as Strait of Hormuz traffic tempers supply fears

According to FXStreet, Brent crude experienced a sharp decline last week to $71.99 per barrel as increased traffic through the Strait of Hormuz eased concerns about potential supply disruptions. This improvement in navigational flows directly alleviates global supply risks, while simultaneously, easing inflation concerns temper demand-side worries. Together, these developments have moderated recent upward price pressures and informed near-term sentiment shifts for the commodity.

Upward momentum builds as support holds and indicators align

On the technical front, XBR is trading above the 20-day ($73.71) and 50-day ($73.31) moving averages but remains below the 200-day moving average ($80.93). The Ichimoku Kijun line at $73.55 serves as immediate support. The Moving Average Convergence Divergence (MACD) is in buy territory, with the Average Directional Index (ADX) showing neutral directional strength. The Relative Strength Index (RSI) reads 57.5, while the Stochastic RSI, Commodity Channel Index (CCI), and Bull/Bear Power all signal buying pressure. The Awesome Oscillator confirms ongoing upward momentum, and no major bearish divergences are present.

Bullish bias emerges as consolidation expected within defined range

Over the next 2–3 trading days, Brent crude is likely to consolidate within a range of $73.19 to $75.65. The probability of an upward move is very high, with a low likelihood of a downside break. The base case scenario points to continued consolidation in the given corridor, while a bullish extension above resistance could open room for further gains, or, in the bearish case, a breakdown below support could draw the price toward the lower end of the expected band.

Viktoras Karapetjanc, analyst at Traders Union, sees Brent crude stabilizing above short and medium-term averages, supported by improved sentiment following eased supply and inflation concerns. He notes strong momentum signals and expects the price to consolidate with a bias toward further gains, barring any renewed risk shocks. Technicals and recent fundamentals suggest buyers are in control for now. 'The macro backdrop and technical momentum together point to a high probability of Brent crude testing higher levels in the coming sessions,' says Karapetjanc.

Earlier, analysts noted that easing geopolitical risks and improved shipping flows through the Strait of Hormuz had pushed Brent crude back toward pre-conflict levels. The recent technical momentum and sustained price action above key short- and medium-term averages point to further upside potential, with a decisive break above $75.65 potentially signaling a stronger bullish reversal in the coming sessions.

Source of Data: XBR Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.