Oil prices need to close above $100 on a weekly basis to keep the bullish momentum. The Brent crude oil target remains the $125 to $135. A break above this area will keep the bullish momentum and further upside in the Brent crude oil market.
The formation of the Adam and Eve pattern in Brent is like the patterns in WTI crude oil. These patterns show the bottom action in both markets. The next move in Brent oil will likely be higher after this correction. But the price must remain above $80.
Bottom Line
Oil prices remain supported due to Middle East tensions, threats to the Strait of Hormuz and dwindling U.S. crude stocks. WTI and Brent have bounced back from important support levels, but both of the markets require good breakouts to validate the next bull run.
WTI will need to extend above $100 to open the way to $105 to $120, while Brent will require a weekly breakout above $120 and a weekly close above $100 to go to $125 to $135. The overall trend is bullish as long as prices are above $80. Oil prices will remain positive if supply fears persist. Buyers will defend these support levels, which could lead to further price gains.
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