Brent oil may retest support at $48.42
- It is supposed to rise towards $51.02. However, the bulls seem to be unconfident in pushing the price towards this level.
SINGAPORE: Brent oil may retest a support at $48.42, with a good chance of breaking below this level and falling to $47.94 per barrel.
The rise from Tuesday's low of $48.09 adopted a typical corrective wave mode, which signals an incomplete correction from the Dec. 4 high of $49.92.
The correction is driven by a wave c, which is capable of travelling into $47.49-$47.94 range. Resistance is at $49.50, a break above which could confirm the extension of the uptrend from $43.08.
Signals are a bit mixed on the daily chart. Oil has cleared a resistance at $47.41. It is supposed to rise towards $51.02. However, the bulls seem to be unconfident in pushing the price towards this level.
The small candlesticks forming over the past few days represent a hesitation of the market. This could probably due to an insufficient correction.
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