Brent Crude Remains Firm as Bulls Retain Control Despite Consolidation Phase

Brent crude regained momentum on Tuesday, climbing back above the key $108 mark as buyers reasserted control following a brief period of consolidation.

The renewed strength helps offset cautionary signals from Monday’s candlestick, which formed a Doji with a long upper shadow, typically seen as a sign of emerging selling pressure. The latest advance has pushed prices toward the upper end of the three-day congestion range, bringing the psychologically important $110 level back into focus.

Market fundamentals remain supportive amid escalating tensions along the Saudi-Yemen border and reports of damage to a major Saudi pipeline. Concerns over supply disruptions have also intensified following developments around the Bab el-Mandeb Strait, while vessel traffic through the Strait of Hormuz remains severely constrained.

Brent approached the $110 threshold on Monday but encountered stronger resistance in that area as overbought conditions and the significance of the barrier tempered further gains. However, the inability of sellers to trigger a deeper pullback, with declines so far capped by the rising 5-day moving average, suggests that bullish pressure remains intact.

At the same time, Monday’s Doji formation reflects a degree of market indecision, indicating that traders may be reluctant to take larger positions until clearer directional signals emerge.

Initial support is seen at $104.80, Monday’s low, followed by Friday’s trough at $103.48. A stronger support zone lies at the former breakout point near $101.97, where any deeper correction is expected to attract fresh buying interest and preserve the pivotal $100 support level.

Res: 108.40; 110.00; 111.09; 112.70
Sup: 104.80; 103.48; 101.97; 101.16