Brent oil may test resistance at $72.41
- Support is at $71.18, a break below which could cause a fall to $69.95
SINGAPORE: Brent oil may test a resistance at $72.41 per barrel, a break above which could lead to a gain to $73.93.
The consolidation from the July 30 high of $76.38 might be shaped into a wedge, which may consist of three or five waves. Under the three-wave scenario, the current rise could be regarded as a continuation of the uptrend from the March 23 low of $60.27.
Under the five-wave scenario, the current rise could be riding on a wave (d).
In either case, oil is expected to rise into $73.93-$74.86 range.
Brent oil may test support at $67.66
Support is at $71.18, a break below which could cause a fall to $69.95.
On the daily chart, the uptrend looks steady, as oil stabilized above a rising trendline.
The contract has broken $70.75. It is likely to extend gains to $73.50.
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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