- This move followed the deep fall on Monday. Bears seem to have taken good control of the market.
SINGAPORE: Brent oil may retest a support at $61.22 per barrel, as a bounce triggered by this level may have completed.
The bounce is regarded as a part of a wave C from $65.46, which is capable of at least travelling to $58.59, its 61.8% projection level.
The pattern from the March 23 low of $60.27 looks like a head-and-shoulders, which will be confirmed when oil breaks $61.22. It will then suggest a lower target of $56.97.
Resistance is at $63.84, a break above which could lead to a gain into $64.68-$65.46 range. On the daily chart, oil closed at $62.08 on Tuesday, below a support at $62.91, the 38.2% retracement on the uptrend from $49.20 to $71.38.
This move followed the deep fall on Monday. Bears seem to have taken good control of the market.
They are poised to drive the price down.
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