Brent oil may fall to $69.07 per barrel

SINGAPORE: Brent oil may fall to $69.07 per barrel, as suggested by its wave pattern.

The bounce from the Aug. 9 low of $67.60 adopted a three-wave mode. The wave c is much shorter than the wave a. This relation, along with the deep fall from the Aug. 12 high of $71.90, suggests a completion of the bounce.

The wave b ended at $69.07, which works as an immediate target. The bounce may extend, if the oil manages to stabilize around $69.07. Otherwise, the contract may soon revisit the low of $67.60. Resistance is at $70.46, a break above which could lead to a gain into $70.89-$71.32 range. On the daily chart, oil may retest a support at $68.43.

A break will not only cause a fall into $64.15-$66.29 range, but also confirm a reversal of the uptrend from the March 23 low of $60.27.