Technical Analysis: Brent oil about to form Head-and-Shoulders on 4-hour chart
Considering the Brent oil's U-turn from $41.17 the previous day, the energy benchmark seems to undertake the efforts to print Head-and-Shoulders bearish formation on the four-hour chart. However, the black gold needs to slip beneath the neckline, at $37.30 now, to confirm the downside suggesting chart pattern. Following that, the quote's theoretical slump to $27.30/40 becomes anticipated. However, a 200-bar SMA level of $33.75 might offer an intermediate halt during the fall.
Meanwhile, an upside clearance of $41.30 will negate the pattern escalate the oil prices' recovery moves towards challenging the monthly top near $42.43. In a case where the bulls remain dominant past-$42.43, the early-March gap below $45.46 will be on their radar for filling. Other than the technical details, oil prices become important to watch for the day as weekly inventory details for the US Energy Information Administration will be released during the US session.