$104.12 support keeps Brent crude oil trading flat

Traders Union
All News
Commodities
Brent oil dips 0.33% to $105.83

Highlights

Brent crude prices remain high as market participants monitor increased risk of supply disruptions from Middle East conflicts and infrastructure attacks.
Geopolitical tensions in the region are intensifying concerns over stability of energy supplies, contributing to sustained elevated oil prices.
Technicals show strong bullish momentum with Brent crude forecast to trade between $102.03 and $109.63, and a 74% probability of further upward movement.

Elevated prices as Middle East tensions fuel supply concerns

Brent crude oil prices remain elevated as traders assess heightened risk of supply disruptions caused by escalating geopolitical tensions in the Middle East, particularly due to ongoing conflicts and infrastructure attacks, according to Ndtvprofit.

Momentum signals diverge as buying strength faces caution at resistance

XBR/USD currently stands above the MA-20 at $104.68 and the MA-50 at $102.64 on the H4 timeframe, while the daily price is well above the MA-200 at $92.81. The Ichimoku Kijun on the daily chart holds at $104.12, acting as immediate support. MACD signals a strong buy, and ADX continues to indicate sustained buying interest. RSI prints at 58.16, suggesting additional buying potential, whereas Stochastic RSI is in oversold territory and CCI is neutral. Bull/Bear Power leans into an overbought condition, highlighting notable buyer dominance intraday; however, the divergence between Bull/Bear Power and oversold Stochastic RSI flags some caution.

Bullish advance favored as price eyes breakout from sideways range

For the coming sessions, the expected price range for XBR/USD is $102.03 to $109.63. There is a 74% probability of an advance, with downside risk estimated at 26%. If movement remains contained, a sideways corridor between these support and resistance levels is likely; a bullish breakout could develop if the price exceeds current resistance, while falling below immediate support may trigger a further retreat.

Anton Kharitonov, expert at Traders Union, sees Brent crude oil trading in a technically strong position but notes significant fundamental risk from supply threats in the Middle East. He finds bullish momentum signals, yet remains wary due to cautious sentiment from oversold oscillators and elevated buyer dominance intraday. Kharitonov believes the price may continue ranging between $102.03 and $109.63 as geopolitical risks keep traders defensive. "Until a clear break of support or resistance is seen, I am staying on the sidelines and waiting for more directional conviction."

Earlier, analysts noted that while the prospect of increased Russian diesel exports briefly eased fears of fuel shortages, persistent geopolitical tensions in the Middle East and disruptions around key transport routes continued to keep supply risks elevated. With Brent crude oil still trading above major technical support levels and indicators showing sustained buying interest despite signs of caution, traders should monitor for a potential bullish breakout above $109.63 or be prepared for a pullback if immediate support at $104.12 fails to hold.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.