Brent crude oil traded near $105.32 on Sept. 14, retreating from a recent parabolic peak of $109.97 as technical indicators increasingly point to selling pressure ahead.
A bearish crossover in the MACD indicator was confirmed late last week, with the indicator line dipping to 2.52 below its signal line at 2.63. The relative strength index also fell from overbought conditions to 56.94, while the average directional index stood at 40.79, reflecting an ongoing but potentially weakening trend.
On the 5-hour chart, the most recent price bar recorded $229,000 in volume. A parabolic breakdown is approximately 40% complete, according to WarrenAI chart analysis tools used by the source.
Key technical reference points include the Ichimoku cloud top at $104.80 and trailing SuperTrend support at $103.09. A potential long or reversal base has been identified in the $103.00 to $104.20 range, while a chop zone with no clear directional bias sits between $104.20 and $107.20. Resistance near the volume-weighted average price cluster spans $107.20 to $108.50, which could also present shorting opportunities on failed bounces.
Three bearish trade scenarios were outlined with stops set at $108.31 and profit targets at $100.00, $97.50, and $94.50, offering risk-reward ratios of up to 3.17. On the bullish side, entries near $104.20 on a test of the 20-day simple moving average or at $106.00 on a potential bullish engulfing five-hour close carry stops at $100.88 and targets at $109.50, $112.00, and $116.70, with risk-reward of up to 3.76.
The most recent closed session — Sept. 11 — saw Brent settle at $104.47, down $3.16 or 2.94% in U.S. dollar terms.
