Brent has gained some of its positive momentum after the creation of a double bottom pattern at 24.55 on March 18 and on April 1. In the short-term the market could retain range-bound trading as the RSI is moving sideways above the 50 level and the MACD remains near the trigger line and above its zero line.
Should the pair stretch north, the 35.38 level could provide immediate resistance before the price touches the area within the gap that posted on March 9 at 37.23 and the 38.2% Fibonacci retracement level of the downward wave from 59.60 to 24.55 at 37.76. A significant step higher could bring the bullish sentiment back into play, hitting the 39.60 resistance.
On the flip side, the 23.6% Fibo of 32.73 and the 20-period simple moving average (SMA) at 31.96 may pause downside movements, shifting some interest to the area. If traders continue to sell the commodity, the price could fall until the bullish cross of the 40- and 100-period SMA currently at 29.00, while steeper decreases could also touch the 24.55 level.
In the medium-term picture, Brent crude has been trading bearish in the past three months after the close below the 71.30 level.
To sum up, the market is expected to hold slightly bullish in the short-term and bearish in the medium-term.
