Brent Oil chart analysis: Promising potential for a reversal?

The most intriguing technical situation on the Brent Oil chart is currently unfolding. One comprehensive chart covering the past few months encompasses nearly all major price action principles.

To begin with, we observe that Brent Oil is firmly entrenched in a downtrend, which was briefly interrupted by a bullish correction. This correction took the form of a wedge pattern, reaching a local peak with a false breakout above the 38.2% Fibonacci level. However, the bullish momentum abruptly came to an end yesterday with the breakdown of the lower boundary of the wedge, triggering a decisive and uninterrupted decline.

Despite the sharp drop, it eventually found support at a significant long-term level established in early May. Currently, we are witnessing a bounce, which holds great potential for the formation of a double bottom pattern, indicating a possible major reversal. However, it remains uncertain whether this bounce will materialize into a full-fledged reversal, as its fate is still being determined. The situation can be summarized as follows: a breakout of the yellow support will certainly serve as a buy signal, while a price climb back above the 23.6% Fibonacci level can confirm the formation of a double bottom and act as a signal to enter a long position.