Brent oil may test resistance at $70.07

SINGAPORE: Brent oil may test a resistance at $70.07 per barrel, a break above could lead to a gain to $71.38.

The uptrend from $62.38 adopted a five-wave mode, while the drop from $71.38 is a corrective mode.

This structure suggests an extension of the uptrend above $71.38.

With the drop from $71.38 having been deeply reversed, the uptrend may have resumed. Support is at $69.26, a break below could cause a fall to $67.94.

On the daily chart, oil completed a pullback towards a support at $66.29, the 100% projection level of a an upward wave C.

This wave is likely to extend its into a range of $77.96 to $85.17. Following its failure to break $71.75, the Jan. 8, 2020 high, oil is poised to retest this level.

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.