Brent oil may bounce more to $70.95
- The current wave c has briefly pierced above a resistance at $69.67
SINGAPORE: Brent oil may bounce more to $70.95 per barrel, as it has pierced above a resistance at $69.67.
The bounce from the Aug. 9 low of $67.60 may have extended. It consists of three waves.
The current wave c has briefly pierced above a resistance at $69.67.
It may travel a bit further to $70.95.
Based on preceding wave b, the wave c may complete below the peak of the wave a at $71.90, which is the Aug. 12 high.
Support is at $68.88, a break below which could cause a fall to $67.60.
Brent oil may fall to $69.07 per barrel
On the daily chart, oil managed to hover above a support at $68.43 again. It may remain sideways within a range of $68.43-$70.75 for one day before choosing its next direction.
Most likely, oil would dive into $64.15-$66.29 range, as suggested by the signals on the hourly chart.
A retracement analysis on the uptrend from $35.74 to $77.84 reveals a support at $67.90, which works together with the one at $68.43 to stop the fall.
With oil repeatedly testing these supports, chances are it may overcome these barriers and fall towards $61.76.
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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