Brent Crude Oil Price Surge Fades Amid Broken Trend Lines

Brent crude oil posted strong gains in its recent intraday trading as it attempted to recover some of its previous losses. This upward movement came after Brent crude offloaded its oversold conditions on relative strength indicators, only to reach severe overbought levels compared to the price move.

The rapid gain in Brent crude oil may soon lose steam due to a loss of momentum. This is because the price has broken a bullish trend line on the short-term basis and continues to trade below its EMA50. As a result, the chances of a full recovery in the near term are reduced.