Markets

Brent oil may test resistance at $71.86

  • Support is at $70.47, a break below which could cause a fall to $69.09
Published August 25, 2021

SINGAPORE: Brent oil may test a resistance at $71.86 per barrel, a break above which could lead to a gain to $73.58.

The whole correction from the July 6 high of $77.84 could have ended, as confirmed by the strong rise over the past two days.

The contract could be rising towards the peak of a wave (b) at $76.35. A less bullish target is $73.58, which is suggested by a falling channel.

India's July oil imports hit 1-year low

Support is at $70.47, a break below which could cause a fall to $69.09.

On the daily chart, the second big white candlestick formed on Tuesday, after the one on Monday.

The pair represents a strong bullish sentiment which is likely to drive the price higher on Wednesday.

The intact trendline signals a steady uptrend from $15.98. A reversal of the trend will only be considered if oil breaks $67.90.

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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