Brent oil may test support at $61.22

SINGAPORE: Brent oil may test a support at $61.22 per barrel, a break below could cause a fall to $59.91.

The bounce triggered by this support has completed, as it has been almost reversed.

Oil is riding on 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 indicate a target of $56.97.

It will be confirmed when oil breaks $61.22.

Following its two failures to break $61.22, the contract may succeed in its current attempt. Resistance is at $63.84, a break above could lead to a gain into $64.68-$65.46 range.

On the daily chart, oil is consolidating around $62.91, the 38.2% retracement on the uptrend from $49.20 to $71.38.

This consolidation followed a drop from the March 29 high of $65.46.

Most likely, a continuation pattern is developing.

The drop may resume soon.

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.