Brent oil may bounce to $67.39 before falling
- The bounce will have little impact on the steady downtrend, which may extend into $59.55-$62.01 range, as the wave c did not complete around $65.98
SINGAPORE: Brent oil may bounce to $67.39 per barrel before resuming its downtrend, as suggested by a projection analysis and the hourly RSI.
The contract found a temporary support at $64.46, the 114.6%projection level of a downward wave (c) from $76.38. The bullish divergence on the hourly RSI indicates a further bounce from the current level.
The bounce will have little impact on the steady downtrend, which may extend into $59.55-$62.01 range, as the wave c did not complete around $65.98.
A break below $64.46 could confirm the continuation of the trend towards the target zone.
On the daily chart, oil managed to hover above a trendline rising from the April 22, 2020 low of $15.98. The support established by this trendline, along with the one at $64.57, has triggered a pullback towards a resistance at $67.90, the 23.6% retracement of the uptrend from $35.74.
Based on this retracement analysis, the downtrend may resume towards $61.76, once the pullback is over.
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.
Comments
Comments are closed for this article.