Markets

Brent oil still targets April 20 high of $68.08

  • With the drop from $71.38 having been so much reversed, the current rally looks like a resumption of the uptrend from $35.74.
Published April 29, 2021

SINGAPORE: Brent oil still targets its April 20 high of $68.08 per barrel, as it has broken a resistance at $67.08. This is the last barrier towards $68.08. It is not very clear if the contract could break this level.

Given that it failed on April 20 in its first attempt, it may fail again this time, to start a shallow correction towards $66.47-$67.08 range.

A break could lead to a gain into a wide range of $68.76-$71.38. Support is at $67.08, a break below which could cause a fall into a zone of $65.47-$66.47.

On the daily chart, oil is testing a resistance at $68.14.

With the drop from $71.38 having been so much reversed, the current rally looks like a resumption of the uptrend from $35.74.

The resumption will be confirmed when oil breaks $71.38, until when, oil is still biased to start the second correction towards $60.29.

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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