Brent oil target of $70.25 aborted; further gains expected
- In either case, oil may gain more towards $76.62. Support is at $73.50
SINGAPORE: A bearish target of $70.25 per barrel has been aborted for Brent oil, due to the rise on Wednesday.
The target was suggested by a double-top, which became invalid, following the surge above the its neckline. The nature of this surge looks confusing.
It could be a simple bounce against the preceding fall or a continuation of the uptrend from the Dec. 2 low of $65.72.
In either case, oil may gain more towards $76.62. Support is at $73.50, a break below could cause a fall into the range of $71.88 to $72.69.
Brent oil may fall to $70.25; fierce bear market looms
On the daily chart, oil is struggling around a pivotal support of $73.50, reluctant to slide into the price range defined by the lower channel.
The rise on Wednesday could be its last effort to maintain around this support, or a futile tussle to regain its posture to rally.
A further development of chart would offer a clearer picture.
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.