Oil markets experienced a significant surge on Monday, with Brent crude climbing to its highest level since the second half of April. The price tested a crucial resistance zone near $68.5—a level that previously served as support in March and later as resistance in April. This historical relevance makes it a highly influential technical barrier, and the market's reaction confirms that sellers are not ready to surrender just yet.
Following the resistance test, Brent retraced slightly, signaling an active defense by the bears. At the moment, the price is finding short-term support on a black trendline that connects higher lows from the end of May. This trendline is playing a key role in maintaining the bullish structure.
Should the price remain above this trendline, another attempt to break through the $68.5 resistance appears likely. However, a daily close below the black trendline would tip the balance in favor of the bears, triggering a sell signal. In that scenario, the next potential support lies on the orange dynamic uptrend line, which could serve as the primary downside target.