Brent oil may retest support at $69.95
- The key focus is on a pivotal support of $68.43, which plays an important role in evaluating the following direction
SINGAPORE: Brent oil may retest a support at $69.95 per barrel, as suggested by its wave pattern and a projection analysis.
The contract is riding on a wave (c) from the July 30 high of $76.38. This wave consists of many small impulsive waves. Such a structure suggests an extension of the wave (c) towards $65.98.
The bounce triggered by the support seems to be loosing its momentum. Chances are it may end around $71.18. A rise above $71.50 could signal an extension of the bounce towards $72.41.
Brent oil may gain more to $56.65
On the daily chart, a bearish target of $68.43 remains intact, as pointed by a rising trendline.
The small white candlestick forming on Thursday is no bullish reversal pattern. It has little impact on the steady downtrend from $76.38 (refer to hourly chart).
The key focus is on a pivotal support of $68.43, which plays an important role in evaluating the following direction.
The uptrend will keep intact, if oil manages to remain above this level.
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.
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