Brent oil may test support at $68.66
- Because of this failure, the contract may experience the final correction before rising above a bullish wedge.
SINGAPORE: Brent oil may test a support at $68.66 per barrel, a break below could cause a fall to $67.88.
The drop on Monday appears to be due to a contract switch on the continuous chart. However, there could be a deeper reason that a five-wave cycle from $64.57 had completed.
A retracement analysis suggests a target zone of $67.25 to $67.88. The uptrend is expected to resume upon the completion of the correction, as indicated by the five-wave mode.
A break above $69.55 may also signal a continuation of the uptrend towards $71.38. On the daily chart, oil failed to break a resistance at $70.75.
Because of this failure, the contract may experience the final correction before rising above a bullish wedge.
A break above $70.75 could confirm the pattern and a target range of $77.96-$85.17.
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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