SINGAPORE: Brent oil may test a resistance at $72.71 per barrel, a break could lead to a gain to $73.38.
The contract rose above the June 7 high of $72.27. This move confirmed the uptrend from the May 21 low of $66.94, which might be riding on a powerful wave (3)-3.
A projection analysis suggests that the trend may eventually extend into $74.47-$75.55 range. Support is at $71.62, a break below which could cause a fall to $70.95.
On the daily chart, the contract stayed firm above a former resistance at $70.75. It is expected to test the next resistance at $73.50, a break above could lead to a gain at $77.96.
A bullish wedge suggests a target around $75.
A rising trendline points at a much higher target of $85.17. What was expected to be a sharp rally is turning out to be a slow climb.
Regardless of the exact mode of the rally, the targets could be fulfilled one by one.
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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