Brent oil may retreat into $72.08-72.71 zone
- A projection analysis suggests a target of $70.75, which will be available when the target zone on the hourly chart is reached.
SINGAPORE: Brent oil may retreat into a zone of $72.08-72.71 per barrel, as it failed to break a key resistance at $74.54.
The resistance is identified as the 100% projection level of an upward wave C from $64.57. This wave may end around this barrier or extend far beyond it.
The bigger volatility on Wednesday suggests the development of a decent correction. Whether the wave C is over will be subject to a further observation. One thing is clear that this wave will be further reversed.
The depth of the correction remains a mystery. Most likely, it will extend into a range of $72.08-$72.71. Only a break above $74.54 could confirm the continuation of the uptrend.
On the daily chart, there is a false break above a resistance at $73.50. The long-expected pullback towards a wedge may have started.
A projection analysis suggests a target of $70.75, which will be available when the target zone on the hourly chart is reached.
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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