Brent oil may retest support at $72.08
- On the daily chart, oil fell far below a resistance at $73.50.
SINGAPORE: Brent oil may retest a support at $72.08 per barrel, with a good chance of breaking below this level and falling into $70.95-$71.62 range.
The deep fall on Thursday could be just an appetizer. Main course is yet to come. A five-wave cycle from $64.57 has been confirmed over. The current fall could be as deep as the one from the May 18 high of $70.24.
It is not very clear if a longer uptrend from $60.27 has reversed. If it has, the fall could be much deeper. Resistance is at $73.38, a break above which could lead to a gain into $73.80-$74.47 range.
On the daily chart, oil fell far below a resistance at $73.50.
It is unlikely to retest this level in the short term. It is falling towards the support at $70.75. The fall is classified as a pullback towards a wedge.
This pullback may end in the support zone of $68.43-$70.75.
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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