Brent crude price tumbles over 7% as selling pressure intensifies after sharp opening surge

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Brent crude slides 7.28% today

Highlights

Brent crude continues to exhibit strong bullish momentum across short, medium, and long-term technical signals.
Despite an initial gap higher, intraday trading turned sharply lower, with volatility reaching 12.51% and downside pressure prevailing.
Key support is set at $84.34 and resistance at $88.88, with a 76% probability assigned to further upside and a five-day range between $76.6 and $88.88.

Anton Kharitonov, expert at Traders Union, sees the sharp 7.28% Brent crude drop as a concerning loss of short-term momentum. He highlights that this pullback defies the otherwise bullish technical structure, noting signs of stretched sentiment with several overbought indicators. The lack of fresh news or fundamental drivers adds caution, leaving upside moves vulnerable to further correction. Kharitonov cautions that although prices remain above major supports, intraday volatility and dominance by short sellers should not be underestimated. He warns, "This session suggests that traders should brace for increasing downside risk and tighten risk controls, despite apparent technical strength."

Viktoras Karapetjanc, expert at Traders Union, emphasizes that Brent crude maintains a robust bullish structure even after the steep intraday correction. He finds that the alignment above all key moving averages reflects ongoing strength and sees the technical configuration supporting further growth. Karapetjanc notes that despite missing fresh news, the market offers multiple setups favoring trend continuation. He concludes, "This pullback looks like healthy profit-taking — I expect buyers to regain control and see a new push towards $88.88 in the near term."

Jainam Mehta, market strategist, observes that while the rapid downside move jars with the bullish backdrop, price is still holding above major averages. He identifies immediate pressure at $84.34, with volatility suggesting possible whipsaws around support levels. Mehta sees an opportunity for tactical positioning should sellers fail to break $84.34 cleanly. He remarks, "If we see momentum stabilizing above support, a contrarian entry could target a swift recovery toward the range ceiling."

Overbought signals persist as downside momentum challenges support

Brent crude is trading above all its key moving averages, with the current price at $84.77 positioned above the 20-day ($79.46), 50-day ($84.02), and 200-day ($82.49) moving averages. This alignment signals continuing bullish sentiment in the short, medium, and long term, with the Ichimoku Kijun at $81.01 acting as support; immediate focus remains on the near-term floor at $84.34 and resistance at $88.88. Momentum gauges are strong, as both the Moving Average Convergence Divergence (MACD) and the Average Directional Index (ADX) indicate bullish conditions. The Relative Strength Index (RSI) at 67.26 points toward stretched territory, and both Stochastic RSI and Commodity Channel Index (CCI) signal overbought conditions. Bull/Bear Power (BBP) at 7.38 confirms buyers are dominating intraday momentum and is flagged as overbought, with the Awesome Oscillator also supporting the current uptrend. Intraday, Brent crude gapped higher at the open by approximately 0.8 ($0.80, or 0.87%) before dropping $6.66 (slipping 7.28%), now trading near today’s low with intraday volatility at 12.51%. The tone is corrective after a sharp opening surge, with downside pressure dominating the session and momentum signals diverging from the intraday pullback.

Previously it was reported that Brent crude faced heightened volatility and downside pressure due to escalating geopolitical tensions and overbought technical conditions. The current price action adds a new dimension, as the corrective retreat despite a strong technical backdrop underscores the importance of monitoring momentum shifts for signs of further weakness or stabilization near $84.34 support.

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

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