SINGAPORE: Brent oil may retest a support at $91.57, a break below which could cause a fall to $89.94.
The bounce triggered by this support has ended around a resistance at $94.20, after oil repeatedly failed to overcome this barrier. The drop from the Wednesday high of $96.07 could have resumed.
A break below $91.57 will not only open the way towards $89.94, but also confirm a price range defined by the lower channel.
Once falling into the lower channel, oil may extend its loss to $86.49.
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A break above $93.39 may lead to a gain into $94.20-$95.21 range.
On the daily chart, the support at $92.69 looks unable to hold under persistent attacks by bears.
Once overcoming this obstacle, oil is likely to retrace into $85.17-$89.63 range.
The uptrend from the Dec. 2, 2021 low of $65.72 remains intact. It may resume upon the completion of the current correction.
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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