• Brent crude oil reversed from major resistance area
• Likely to fall to support level 70.00
Brent crude oil recently reversed down from the major resistance area lying between the major, long-term resistance level 74.17 (former yearly high from the middle of 2019) and the upper weekly Bollinger Band. The downward reversal from this resistance area will create the weekly reversal pattern Shooting Star (strong sell signal) – if the price closes this week near the current levels.
Given strength of the aforementioned resistance area and the deterioration of the risk sentiment across the commodities markets on inflation prospects in USA – Brent crude oil can be expected fall further toward the next round support level 70.00 (former strong resistance from the start of 2021).