SINGAPORE: Brent oil is expected to rise to $68.77 per barrel, as suggested by its wave pattern and a projection analysis.
The contract is riding on a wave C from $60.60. This wave could travel into a wide range of $68.77-$73.82, formed by its 61.8 percent and the 100 percent projection levels.
The resistance at $67.21 has been more or less broken. The next resistance will be at $68.77. Support is fixed at the Feb. 21 low of $66.69, a break below which could cause a loss to $65.65.
It must be noted that the wave C could end around either $68.77 or $73.82. As a result, the resistance at $68.77 may trigger a decent correction, which has not occurred ever since the wave C started.
Making such a correction more likely is another resistance at $68.33 on the daily chart, the 50 percent retracement on the downtrend from $86.74 to $49.93.
The pattern from the Nov. 29, 2018 low of $57.50 looks like an inverted head-and-shoulders. Even though it suggests a target around $78.05, a pullback towards its neckline around $64 has not been observed. This pullback may develop around $68.33.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. 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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