We update this piece throughout the trading day as prices move.
Brent Oil just pushed up to a brand-new high of $113.31 on the 5-hour chart. But the buying force is starting to look worn out, and the price is stretching right against the top Bollinger Band. Buyers are still holding the steering wheel for now, but several signs tell us that the price might need to take a breather and drop back a bit first.
Buyers Are Winning Right Now, But Can It Last?
There is no question that oil has been going up. Price is sitting nicely above the 20, 50, and 200 simple moving averages. The MACD indicator is still in positive territory at 1.54 compared to its signal line at 1.29, which means buyers are still active. Brent managed to run all the way up to $113.31, sitting directly inside a tough ceiling area. Yet, the ADX reading is down at 14.68, showing that this push lacks genuine muscle. On top of that, trading volume has been drying up while prices made new highs. Because of this, a slide back toward the $110.50 mark—where the 20-SMA sits alongside other support levels—is a very real possibility.
Warning Lights: Price Is Stretched Too Far
We saw a solid green candle without wicks show up recently, which tells us buyers were aggressive during that stretch. However, the price is now rubbing right up against the upper Bollinger Band at $113.35 and hitting channel resistance between $113.38 and $113.50. Breakout traders might feel tempted here, but history reminds us that prices usually stall or pull back from these spots before making any real move higher. Right now, the space between $110.53 and $113.35 is essentially a dead zone where jumping in makes little sense. It pays to wait for a clear dip or a clean break above resistance.
Trade Setups and Risk Levels
If you are looking at trade setups, rushing in right at the top brings poor odds. Waiting for support near the lower boundary gives a much safer risk-to-reward ratio than buying at the very peak of the channel.
Key Price Marks to Keep on Your Screen
- Top Resistance: $113.38 to $113.50
- Upper Band Barrier: $113.35
- First Solid Floor: $110.50 to $110.53 (20-SMA zone)
- Trend Strength Gauge: ADX at 14.68 (signals weak momentum)
A Golden Rule: Ride the Trend, but Pick Your Entry
Running after price when it hits fresh highs without backing volume or strong momentum usually hurts late buyers. Smart traders usually let the market cool off toward support before taking another swing.
Looking Ahead for Your Stock Picks
Tech and automated tools are reshaping market choices every day. Investing.com’s ProPicks platform relies on deep computing models to build winning baskets. Its Tech Titans strategy beat the S&P 500 by double in just 18 months, riding massive gainers such as Super Micro Computer (+185%) and AppLovin (+157%). It leaves traders asking which stock will make that kind of jump next.
Conclusion for Businesses and Traders
For traders, buying crude oil right at $113.30 carries high risk. Low volume and a weak trend reading mean you should hold off until price eases back toward $110.50. For businesses relying on fuel, shipping, or energy supplies, do not panic-buy hedges at these peak levels. Look for prices to pull back slightly over the coming sessions to lock in better procurement costs.