- A break above $75.36 could lead to a gain to $76.71, the peak of the wave b
SINGAPORE: Brent oil may break a resistance at $74.52 per barrel and edge up to $75.36, as suggested by a falling trendline.
The rise from the July 20 low of $67.44 shows no sign of reversal. It may extend further. However, the falling trendline suggests a pause of the rise in the zone of $74.52-$75.36.
Most likely, a correction would occur in the zone.
A break above $75.36 could lead to a gain to $76.71, the peak of the wave b. Support is at $73.85, a break below which could cause a fall into $72.33-$73.17 range.
On the daily chart, oil climbed above a resistance at $73.50.
It is expected to gain more towards $77.96. However, the candlesticks have become smaller since the big one appeared on July 21.
Such a pattern suggests a dissipation of the bullish momentum. A correction is due.
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.