SINGAPORE: Brent oil may revisit a low at $87.74 per barrel touched on Monday as the swift recovery of the price from this low may not sustain.
The recovery followed a brief piercing below support at $88.49, the June 22, 2012 low. Many stop orders below this level could have been triggered and thus contribute to the recovery.
The downtrend has not been reversed, which remains steady within a falling channel.
The lower channel line points a potential target between $85 and $86.
Oil may not rise again towards the upper channel line resistance around $90, most likely, it could temporarily hover around $88.49 before plunging again.
The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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