Current trend

The price of Brent Crude Oil remains upside, trading at 91.07 amid growing fears that the conflict between Israel and the Palestinian Hamas movement could disrupt supplies from the oil-producing region of the Middle East.

The negative dynamics developed after signs of easing geopolitical tensions appeared: over the weekend, Israel announced that it would withdraw part of its military contingent from the southern part of the Gaza Strip, and representatives of the parties resumed peace negotiations mediated by Egypt, the last round of which led to a decrease in the quotes from 91.95 to 89.11. However, on Monday, Israeli Prime Minister Benjamin Netanyahu said that Israel was preparing to invade the Rafah enclave in the Gaza Strip. He did not give a specific date, but the markets showed fears that caused prices to rise.

The long-term trend remains upward: the price reached the resistance level of 91.95, slightly corrected, and is trying to grow again. If 91.95 is broken upward, the next target will be the October high of 93.79 and then 96.22. If 91.95 is maintained, a decline is expected, with the target at 89.10 and then 87.60. The RSI indicator (21) is approaching the overbought zone but has not yet entered it, which allows you to open long positions along the trend.

The medium-term trend is upward: last week, the quotes approached zone 3 (93.11–92.56) but retreated from local highs. If the correction continues, the key trend support area of 87.27–86.76 may be reached, and then long positions, with the target at last week’s high of 92.15 are relevant.

Resistance levels: 91.95, 93.79, 96.22.

Support levels: 89.10, 87.60, 85.39.

Trading tips

Long positions may be opened from 89.10, with the target at 91.95 and stop loss around 88.25. Implementation time: 9–12 days.

Short positions may be opened below 88.25, with the target at 85.39 and stop loss around 89.50.