Brent crude futures declined below $91 on Monday, extending losses after a technical breakdown confirmed a double-top pattern. The contract fell to $90.64 in afternoon trading, down from intraday highs near $92.40, as selling pressure intensified.
The decline breached a critical support zone around $90.60, a level reinforced by the SuperTrend indicator at $90.68. The 20-period simple moving average, currently at $92.40, acted as a ceiling, while the 200-period SMA at $84.69 provided a deeper support level. Volume analysis showed a concentration of activity between $90 and $92, though a no-trade zone between $90.28 and $92.40 limited intraday volatility.
Technical signals turned bearish, with the MACD crossing into negative territory on the five-hour chart. Traders monitoring the Ichimoku cloud and volume point of control noted a shift in momentum, reinforcing the downside bias. Fibonacci retracement levels suggested potential targets at $85.67, aligning with the 200-day SMA, and further support at $84.69.
Bearish trade setups emerged with entry points at $90.20 or $89.20, targeting $85.67 and $82.00. Risk/reward ratios for these scenarios ranged from 2.7 to 5.0, reflecting medium confidence. Conversely, a bullish reversal would require reclaiming the $92.50 level, with targets at $93.74 and $94.83 before challenging prior swing highs near $101.20. Stop-loss levels were set at $91.83 for bearish plays and $88.96 for bullish reversals.
The contract’s average true range remained subdued at 1.2% of price, indicating limited intraday volatility despite the directional move.
