SINGAPORE: Brent oil may break a resistance at $64.03 per barrel, and bounce more towards the next resistance at $64.72, as it failed to break a support at $62.93.
The support is provided by the 61.8 percent retracement of the rally from $61.13 to $65.83. The drop from $65.83 looks too sharp to sustain. It could be further reversed.
The sharp fall makes the rally look more like a corrective cycle. However, it is too early to conclude that the medium-term uptrend from the June 21 low of $44.35 has reversed.
Support is at $63.48, a break below which could cause a loss to $62.93.
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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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