Since Brent rebounded off 38.2% on 2-Nov-2020, it has been progressing a new base of uptrend market structure by continuously making higher highs and higher lows. This bullishness is also supported by the rising combined 20,50&200-day and green Kumo cloud.
At this juncture, there will be two likelihoods:
First, a cautious stance should be taken as:
1) Brent has touched upper BB line which indicates the price has overextended, and this is also accentuated by the oscillator is above 70 of overbought band.
2) A divergence between price and STO oscillator which the latter shows Brent has reached overbought territory.
These may send a signal of retracement (reverse and move downward) to make a new higher low base before Brent continuing its upward trajectory in forming the next higher base of uptrend structure.
Second, if Brent violates above the critical resistance of USD55, it is expected the Brent to pave the way towards initial medium-target of USD60 as next upper resistance which coincides with earlier 78.6% .
Nearest support levels will be USD51 of 20-day mid-line BB (which has been tested and rebounded off several times since 18-Dec-20) and USD49.