Brent crude surged yesterday, breaking through key local resistance levels on the XBR/USD chart, and today it has pushed past $110, approaching the multi-year high last seen on 9 March.
The price rally is being driven by escalating conflict in the Middle East. Recent reports highlight:
→ US President Donald Trump attributing responsibility for the strike on Iran’s South Pars gas field to Israel;
→ Iran launching missile attacks on major Qatari LNG facilities, causing significant operational damage.
Technical Overview
The price action allows the formation of an upward-sloping channel, indicating sustained bullish pressure.
Bullish indicators:
→ A V-shaped rebound near the lower quarter of the channel shows aggressive buying;
→ Bulls confidently pushed above $106.40;
→ The upper half of the channel is holding, with the median line potentially acting as support.
Bearish indicators:
→ RSI readings suggest the market is approaching overbought conditions;
→ Long upper wicks near $110 reflect strong selling activity;
→ The channel’s upper boundary may act as resistance if selling intensifies.
In conclusion, Brent remains largely under buyers’ control. While minor pullbacks may occur, they are unlikely to be deep, and a significant trend reversal would likely require major geopolitical developments.
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