Brent oil may rise into $73.38-$73.80 range
- The contract is yet to pull back towards the wedge. The higher it rises, the unlikely this pullback occurs.
SINGAPORE: Brent oil may rise into a range of $73.38-$73.80 per barrel, as it has broken a resistance at $72.71.
The break is convincing, as it followed two corrections on June 9 and June 10. The break signals a continuation of the uptrend towards the range of $74.47-$75.55 range.
Oil is expected to maintain its slow rise towards the target range.
A realistic target will be either $73.38 or $73.80. Support is at $72.08, a break below which could cause a drop into $70.95-$71.62 range.
Wave pattern suggests the progress of a wave 5, which is expected to be roughly equal to the wave 1, to travel to $74.47.
On the daily chart, the uptrend remains intact and is extending towards $75, as suggested by a confirmed wedge.
The contract is yet to pull back towards the wedge. The higher it rises, the unlikely this pullback occurs.
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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