In our analysis of Brent crude oil six days ago, we identified a large contracting triangle and a local ascending channel. We also outlined a potential scenario involving a bullish breakout above the upper boundary of the triangle.
Although this was not the base-case scenario, the XBR/USD chart now suggests it has played out: yesterday, the price climbed to nearly $67 per barrel — its highest level since the end of April.
The main bullish catalyst appears to be ongoing trade talks between the United States and China, which have raised hopes of a resolution to tariff-related tensions between the world’s two largest economies.
At the same time, rising oil prices may exacerbate geopolitical tensions, particularly amid Israeli threats to strike ports in Yemen — a risk that could disrupt supply chains across the Middle East.
Technical Analysis of the XBR/USD Chart
From a technical perspective:
→ Brent crude continues to move within an ascending channel (marked in blue);
→ the upper boundary may now act as a support level.
The fact that the price is holding in the upper half of the channel indicates strong demand-side pressure. Based on this, it is reasonable to assume that as long as Brent remains above the $65.75 level (the retest zone of the breakout), the technical outlook will remain predominantly bullish.
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