Brent oil may climb into $71.47-$71.80 range before falling
- The uptrend is expected to resume once the shallow correction completes.
SINGAPORE: Brent oil may climb into a range of $71.47-$71.80 per barrel, before starting a correction.
The contract could be riding on a wave 5, which is traveling towards the target zone formed by the 361.8% and the 376.4% projection levels of an uptrend from $63.33.
A rising trendline points at the target zone as well. However, it must be noted that a correction is due. An exhaustion gap formed on Monday, following the successive gains from the March 3 low of $62.38.
This gap may be filled over the next few trading days. Support is at $70.41, a break below which could cause a fall into $69.55-$70.08 range.
On the daily chart, oil faces a resistance zone of $70.75-$71.75. The linear rise from March 3 may pause around this zone, to be partially reversed by a correction.
Given that oil has surged far above a key barrier at $66.29, it is likely to extend into a range of $77.96-$85.17 in due course.
The uptrend is expected to resume once the shallow correction completes.
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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