Brent crude has fallen almost $15 since its 2019 peak of $75, forming a double bottom pattern which aligns with the 61.8% Fib level of the Dec 24 - Apr 25 move.
Crude inventories came in higher than expected for the last six Wednesdays, which played an important role in the $15 fall.
However, a possible escalation of tensions in the Middle East after two tankers were attacked earlier this week may support oil in the coming days.
If the double bottom pattern shows to hold, a break above $64.70 may target $67.20, followed by $70.50.
Crude inventories came in higher than expected for the last six Wednesdays, which played an important role in the $15 fall.
However, a possible escalation of tensions in the Middle East after two tankers were attacked earlier this week may support oil in the coming days.
If the double bottom pattern shows to hold, a break above $64.70 may target $67.20, followed by $70.50.
