Reversal alert!

Brent crude oil has been cruising beneath a descending pattern line because the center of the month, nevertheless it seems to be like a breakout is brewing.

The commodity value has shaped increased lows over the previous few days, suggesting that bullish strain is build up.

However what are technical indicators saying?

Brent Crude Oil (UKOIL) 1-hour Chart by TradingView

As you may see from the hourly chart above, the 100 SMA continues to be beneath the 200 SMA to replicate bearish vibes.

Not solely that, however the 200 SMA is even near the pattern line resistance so as to add to its power as a ceiling. This is likely to be a troublesome one for oil bulls then!

Did I point out that Stochastic is inching nearer to the overbought zone, too?

Turning decrease may entice the eye of extra sellers, forcing the downtrend to renew and taking UKOIL again to the latest lows.

To this point, the vitality commodity has been in a position to attract assist from principally upbeat PMI readings final week. If this optimistic enterprise outlook lasts, buyers may value in stronger demand for crude oil within the near-term and have the ability to maintain a bullish breakout.

In any case, wait and see how value reacts to the $83 per barrel space of curiosity to gauge the place Brent crude oil costs are headed subsequent.

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