Brent oil may fall into $61.74-62.23 range
- Immediate resistance is at $63.04, a break above which could lead to a gain to $63.54. Only a further rise could signal the continuation of the uptrend.
SINGAPORE: Brent oil may fall into a range of $61.74-62.23 per barrel, as it could have temporarily topped around a resistance at $63.85.
Oil failed twice to break this resistance. The gap forming on Wednesday represents a strong bearish sentiment. The steep rise from the Feb. 12 low of $60.35 is expected to be further reversed.
Immediate resistance is at $63.04, a break above which could lead to a gain to $63.54. Only a further rise could signal the continuation of the uptrend.
On the daily chart, a spinning top formed on Tuesday around a resistance at $63.87. With oil having opened much lower on Wednesday, this candlestick pattern indicates a dissipation of the bullish momentum.
A decent correction has started, which could extend to any level above $60.29.
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