Brent oil may retest resistance at $73.80
- Oil is testing a resistance at $73.50 (close to $73.80 on hourly chart), which is partially responsible for the shallow correction on Monday as well.
SINGAPORE: Brent oil may retest a resistance at $73.80 per barrel, a break above could lead to a gain at $74.47.
The shallow correction triggered by this resistance is regarded as a pullback towards a former resistance at $72.71, now a strong support.
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.
In commodity market, the fifth wave often becomes extended. Under this scenario, this wave may travel to $75.55.
A break below $72.71 may cause a fall to $72.08. On the daily chart, the uptrend remains intact and is extending towards $75, as suggested by a bullish wedge.
Oil is testing a resistance at $73.50 (close to $73.80 on hourly chart), which is partially responsible for the shallow correction on Monday as well.
A failure to overcome this barrier may be followed by a pullback towards the wedge.
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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