• Brent Crude Oil reversed from resistance area
• Likely to fall to support level 0.9456
Brent Crude Oil recently reversed down from the powerful resistance area located between the long-term resistance level 70.65 (former multi-month resistance level from the start of 2020), upper weekly Bollinger Band and the resistance trendline of the sharp weekly up channel from the end of 2020. The downward reversal from this resistance area stopped the previous short-term impulse wave 3 – which belongs to the sharp upward impulse wave (C) from last November.
Given the strength of the aforementioned resistance area, and the strongly overbought reading on both the weekly RSI and weekly Stochastic indicators – Brent Crude Oil is likely to correct down further toward the next support level 67.40.