Brent crude is consolidating inside a bull flag, and $109.00 is the support level that matters most. Technical indicators point both ways: the long-term trend holds, but short-term momentum has turned bearish.
Brent crude trades at $110.87 inside a bull flag that runs from $109.00 to $113.50, according to Investing.com's technical analysis. The analysis names a breakdown from this consolidation as the primary risk, potentially triggering a deeper correction if structural support at $109.00 fails.
Trend holds while momentum fades
Price sits above the SMA(200) at 104.24, which the analysis reads as an intact long-term uptrend. The Ichimoku cloud spans 110.41 to 112.02, and the price at 110.87 sits inside it, a key support zone that is holding.
However, the bears have their own evidence. The MACD line sits at -0.08, below its signal line at 0.07, a bearish short-term reading. Price also trades below the SMA(20) at 110.79, and Brent has printed lower highs since its peak at 117.45, which the analysis flags as potential trend exhaustion.
Doji and falling volume signal indecision
On Oct 29, Brent formed a Doji at $110.87, which the analysis describes as indecision at critical support. Volume is decreasing at that level.
The analysis marks support at $109.00 with three touches and resistance at $113.50 with two. It also lists Fibonacci retracement levels measured from a swing of 78.11 to 117.45: 23.6% at $108.17 and 38.2% at $102.43.
Scenarios set targets on both sides
In the bear scenario, a break of flag support leads to targets at $104.24, $102.43 and $100.00. The bull scenario aims first at the recent high of $117.45, then at $120.00 and $128.15.
The analysis calls the zone between $109.50 and $111.50 a no-trade range, where price is trapped between moving averages and key support.
Source: Investing.com
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