Brent Crude trades at $89.11, just below resistance at $89.94, with momentum indicators showing both bullish strength and overbought exhaustion. Technical analysis lays out specific bearish and bullish trade zones tied to how the contract reacts near the $90 level.
Price Presses Against Key Resistance
Brent Crude trades at $89.11, inches from resistance at $89.94, according to a technical read of the contract's 5-hour chart. The price sits above both its 200-period simple moving average of $81.45 and its short-term SuperTrend level of $83.87, a setup that confirms trend recovery after the July lows.
The MACD reading is firmly bullish at 1.20, above its signal line at 0.34. Yet the Money Flow Index sits at 88.55, deep in overbought territory. The price also presses against the upper Bollinger Band at $89.54, a sign the rally may be running out of room.
Two Scenarios Around $90
The analysis anchors both scenarios to the Fibonacci retracement level near $90. A bearish setup targets entries at $89.90 or $87.50 on a breakdown, with a stop at $92.42 and downside targets of $84.24, $81.45 and $78.68 — a risk/reward ratio of up to 4.45:1.
A bullish setup calls for entries at $90.20 or a pullback to $84.50, with a stop at $81.98 and upside targets of $94.24 and $101.20 — a risk/reward ratio of up to 6.63:1. Both scenarios carry medium confidence, the analysis notes.
What Could Tip the Balance
A rejection under the $89.94–$90.50 zone would likely open a pullback to $84.24 or $81.45, especially if the MACD or MFI reverses. A confirmed close above $90.20 on strong volume would instead put the prior swing highs of $94.24 and even $101.20 back in play.
Source: Investing.com
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