Current trend

Over the past two weeks, the price of Brent Crude Oil has risen by 10.0% amid ongoing geopolitical tensions in the Middle East and is currently hovering around 84.43.

On June 18, Israeli Foreign Minister Israel Katz warned of a possible global clash with the Lebanese paramilitary organization Hezbollah in response to the rhetoric of its leader Hassan Nasrallah about his readiness to cross the state’s border in the event of increased hostilities. Meanwhile, US Ambassador Amos Hochstein was sent to Lebanon as a mediator in the negotiation process after increased fire along the southern border. If the conflict spreads beyond Israel and Palestine, oil prices will continue to rise.

The long-term trend is upward. The price formed the support level of 77.45 and increased by about 10.0% in two weeks and is trying to consolidate above the resistance level of 84.84. After the consolidation, it may reach the resistance level of 86.59 and 89.35. Otherwise, a decline will begin to the support level of 81.20, where long positions with the target at 84.84 are relevant. After approaching the oversold zone in early June, the RSI (21) indicator returned to the neutral area, which allows us to consider both purchases and sales of the asset.

This week, the medium-term trend reversed upwards after breaking through the 83.44–82.92 zone towards zone 2 (88.72–88.19). Long positions can be considered on the correction from the key trend support area of ​​80.91–80.41 with the first target at this week’s high. After a breakdown of 80.41, the trend may reverse downwards, but the probability of it is low.

Support and resistance

Resistance levels: 86.59, 89.35, 91.95.

Support levels: 81.20, 77.46, 75.40.

Trading tips

Long positions may be opened from 81.20, with the target at 84.84 and stop loss 80.09. Implementation period: 9–12 days.

Short positions may be opened below 80.09, with the target at 77.46 and stop loss 81.32.