Brent oil may rise into $66.45-$66.97 range again
- On the daily chart, oil failed to break a falling trendline.
SINGAPORE: Brent oil may rise into a range of $66.45-$66.97 per barrel again, as suggested by its wave pattern and a projection analysis.
The contract seems to be rising within an ascending wedge, which is contracting towards $68.07, the 638.2% projection level of the uptrend from $54.60.
The deep fall from $66.79 looks very similar to the one from the Feb. 18 high of $65.52. Such frequent drops suggest a weakening uptrend. The pace of the rally becomes irregular.
Following its stabilization around a support of $64.34, oil may have resumed its uptrend towards $68.07. A break below $64.34 could be followed by a drop into the range of $63.35-$63.85.
On the daily chart, oil failed to break a falling trendline.
The resistance at $66.29 presents a big challenge to bulls. A failure to overcome this barrier could result in a reversal of the uptrend from $35.74.
This week works as an important time window in the development of the chart. A break above $66.29 could open the way towards $71.75.
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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