Brent crude oil entered a consolidation phase in its most recent intraday session, stabilizing as it absorbs the gains from its latest rally. The current pause suggests the market is catching its breath, with prospects for renewed upward momentum still intact.
Technically, Brent continues to trade above the 50-day Exponential Moving Average (EMA50), which reinforces the underlying bullish trend on the short-term chart. This ongoing support, along with the presence of a rising bias line, indicates that upward pressure remains dominant.
However, some caution is warranted. The Relative Strength Index (RSI) is beginning to show signs of negative divergence after reaching overbought territory. These early overlapping bearish signals could slow the pace of further gains in the immediate term.
While the general trend remains upward, short-term traders may monitor for fresh bullish signals or confirmation of momentum recovery before entering new positions.
Technical Summary:
Trend: Short-term bullish
Support Level: Watch for stability above EMA50
Resistance Zone: Potential retest of recent highs if momentum resumes
Indicators to Watch: RSI divergence for early correction cues
As the market digests recent gains, Brent crude appears poised for a potential continuation of its upward path—provided momentum realigns with the dominant bullish trend.
