Brent surged to 78 as expected and could not pass the resistance. Omicron variant, slowing recovery, reports about oil surplus for Q1 and now the risks of failure Biden’s $2 trillion worth program is pressuring the oil prices down.
78 is the major resistance and 64-65 is the major support for Brent. The price is forming a head & shoulders formation just below 78 with a 64-65 neckline. The second shoulder might not be clear and may include several attempts to 78 resistance. If it breaks to the upside the formation becomes null. But a downside breakout of 64 (multiple daily closes below or a weekly close for confirmation) may lead to below 50 oil prices according to the head & shoulders formation.
