4 min read Brent has risen for a third consecutive session after the 60-day US-Iran memorandum expired on Monday without a successor agreement, with President Trump saying he is not interested in extending it. Prices closed more than 2.5% higher on Monday and sit at their highest in around three weeks, while talks between Iran and Oman over Strait of Hormuz transit continue without US involvement.
The 4-hour chart
The 4-hour chart shows Brent breaking out of its local downtrend, with support at 88 to 89 and the next resistance zone up at 95.
Looking at the 4-hour chart for Brent crude oil, the global benchmark for oil prices, we can see a local downtrend marked in red, and a second line marked in green where we have a potential break of structure. That break came with a retest of the 85 area, marked with the green circle, which is the same level we flagged in our previous coverage of Brent at the start of the month.
We have since broken above the 88 level and price is working around it now. A hold here with continued upside and we could potentially see a move up towards 95. A failure to hold that 88 to 89 support level and we could potentially see a move back down to the 84 to 85 support area below.
The 1-hour chart
The 1-hour chart shows the Fibonacci reload zone and converging moving averages beneath price, with 90.4 as the level to clear above.
Zooming in to the 1-hour, we can see the level where the local long reload zone sits. That is the area between the 0.618 and 0.786 Fibonacci levels, aligning with the local support area, and it is also where the 1-hour 20 and 50 EMA are converging, marked with the white circle.
A potential test of this zone could bring in some buying pressure, unless the situation in Iran stabilises. This level around 88.5 is most likely going to be the crucial one for bulls to defend throughout the day. A break above the area around 90.4 could potentially signal more upside and open that move towards the 95 area.
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