Brent oil may revisit May 14 low of $66.50
- On the daily chart, the rise during the previous trading session was due to a support at $66.29.
SINGAPORE: Brent oil may revisit its May 14 low of $66.50 per barrel, as the drop from the May 5 high of $69.95 looks incomplete.
The drop is a part of the consolidation within a contracting wedge, which suggests a target of $65.60. The pattern around $69.95 looks like a double-top, which was confirmed but made invalid due to the surge on May 14.
However, this pattern does indicate a reversal of the uptrend from $61.25. Until oil rises above $69.95, it is still likely to retreat towards $65.60.
On the daily chart, the rise during the previous trading session was due to a support at $66.29.
The rise could be regarded as a pullback towards a rising trendline.
Only a break above $70.75 could confirm the continuation of the uptrend towards the range of $73.50 to $77.96.
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