4 min read Brent is pulling back on Tuesday, down around 1.3% and ending three straight sessions of gains that had lifted prices to their highest level in more than two weeks. Russia’s partial lifting of its diesel export restrictions on 10 October, following an agreement with the US, has eased some of the pressure on global fuel supply. At the same time, missile and drone attacks on Riyadh’s main airport by Houthi militants backed by Iran, along with continued strikes on energy infrastructure in Ukraine, are keeping supply risks elevated. With US CPI due on Wednesday, 14 October at 12:30 pm (UTC), traders could be watching closely to see whether this move is a correction within the current trend or the start of a shift in structure.
Brent 4H chart
Brent, 4H chart: price pulling back into local support around 103, in confluence with the 50% Fibonacci retracement, with resistance around 106 above and the 95 area below as the key downside zone if the local trend breaks.
On the 4H chart, Brent is currently trading within a local bullish trend made up of higher highs and higher lows.
Price is now approaching a significant local support area around 103, which also sits in confluence with the 50% Fibonacci retracement level of the latest leg higher.
If price bounces from this area, Brent could potentially move higher to test the next major resistance zone around 106.
A failure to hold the 103 support, however, could signal a break in the local trend structure. In that scenario, price could potentially move lower to retest the 95 area below.
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