Brent oil may bounce towards $71.18

SINGAPORE: Brent oil may stabilise around a support at $69.95 per barrel and bounce towards $71.18, as suggested by its wave pattern and a projection analysis.

The support is identified as the 61.8% projection level of a wave (c) from the July 30 high of $76.38.

This wave may either end around $69.95 or extend to $65.98.

Brent oil may fall more to $67.14

Regardless of the final ending point, this wave may pause around $69.95 and start a bounce. A break below this level could cause a fall to $68.43, while a break above $71.18 may lead to a gain to $72.41.

On the daily chart, the contract is expected to eventually drop to $68.43, as pointed by a rising trendline.

The anticipated bounce on the hourly chart is classified as a consolidation around a support at $70.75.

The uptrend will keep intact, if oil manages to remain above $68.43.

A break will not only open the way towards $64.15-$66.29 range, but also suggest a reversal of the uptrend from $35.74.

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.