Brent crude oil has advanced slightly in its intraday trading as it positions itself to attack the key resistance level at $71.35. This comes amid an upward corrective trend in intraday levels and trading along a trendline. The price is also supported by continued positive momentum from trading above its 50-day simple moving average.
Moreover, the price rose after successfully offloading its overbought condition, as indicated by the RSI in previous sessions.
We expect Brent crude oil to gain further in the upcoming sessions, particularly if it manages to break the resistance at $71.35. Following a successful breakout, the next target is the resistance level at $73.60. This bullish outlook holds as long as the support at $70.00 remains intact.
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The price of crude oil has risen in recent intraday trading, confirming the break of a short-term downward sub-trendline.
This move is supported by its continuous trading above its 50-day simple moving average.
Additionally, it is trading along an upward corrective trendline, with the onset of a positive RSI crossover after the indicator reached significantly exaggerated oversold levels relative to the price movement.
Our forecast indicates further corrective upward movement for oil in the upcoming sessions, especially if it manages to break the resistance at $67.95.
Such a breakthrough would confirm the bullish double bottom pattern, with the price then targeting the resistance level at $70.00 as the next price target.
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