Brent oil still targets $75.36-$75.87 range

SINGAPORE: Brent oil still targets a range of $75.36-$75.87, as it has broken a resistance at $74.52 per barrel.

Most importantly, oil has broken a falling trendline. The break significantly decreases the chance of a downtrend resumption.

It also increases the chance of a rise towards $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.

The downtrend will be considered to have resumed, if the contract drops into the range.

Brent oil may edge up to $75.36

On the daily chart, oil broke a resistance at $73.50. It is expected to rise towards $77.96, the 138.2% projection level of an upward wave C.

The strong recovery of the price from the July 20 low of $67.44 suggests an extension of the wave C towards $85.17, as this wave did not end around $77.96.

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