At the time of writing, Brent crude is trading at $107.61 on the 4-hour chart after getting rejected by the resistance at $110.09. I see the broader consolidation trend intact, but the recent sharp move has undoubtedly slowed the trend. Price is trading well above both moving averages, so I consider this pullback to be a pullback within a consolidation bullish trend, rather than a confirmed reversal.
The first level of support I am monitoring is $104.14, which closely aligns with the 23.6% Fibonacci retracement level. Further down, support is created by $100.36 and $97.35 and $94.34. On the upside, $110.09 continues to be resistance. $114.48 becomes relevant to traders should buyer control return.
I believe the RSI indicates the market is strong but is vulnerable to price consolidations. Therefore, I will remain bullish as long as Brent crude trades above $104.14. A break below $100.36 would likely end the bullish interpretation, and a clear move above $110.09 would confirm a bullish interpretation of $114.48.
