Brent oil may bounce into $51.77-$52.29 range
- This wave could either complete around $54.62 or extend a lot to $66.29. A drop below $49.20 could confirm its completion.
SINGAPORE: Brent oil may bounce into a range of $51.77-$52.29 per barrel, as suggested by a projection analysis.
The deep fall from Monday's high of $53.33 seems to have temporarily ended around a support at $50.92, the 200% projection level of the uptrend from $39.34. Oil may bounce to $51.77 or $52.29.
It is not very clear if oil could revisit the high of $53.33, as the fall from this level may consist of three waves. The bounce will be driven by the second wave labelled b.
The third wave labelled c could start around $52.29. Under this scenario, oil may drop into $49.55-$50.13 range over the next few days after the bounce.
On the daily chart, the shooting start forming on Monday indicates a dissipation of the bullish momentum around a key resistance of $54.62, the 61.8% projection level of an upward wave C from $35.74.
This wave could either complete around $54.62 or extend a lot to $66.29. A drop below $49.20 could confirm its completion.
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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