Brent oil may test support at $48.72
- The second wave labelled b may end below $49.50, to be reversed by a downward wave c.
SINGAPORE: Brent oil may test a support at $48.72 per barrel, a break below could cause a fall into $47.94-$48.72 range.
The support is provided by the 276.4% projection level on an uptrend from $43.08.
The trend was stopped by the resistance at $49.98, which triggered a correction that may consist of three waves.
So far, only the first wave has completed.
The second wave labelled b may end below $49.50, to be reversed by a downward wave c.
The bearish divergence on the hourly MACD suggests a further drop as well. A break above $49.50 could lead to a gain to $49.98.
On the daily chart, a bearish divergence formed on the daily RSI.
The divergence suggests that oil may pull back again towards a suport zone of $46.53-$47.41.
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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