Markets

Brent oil may bounce more to $70.95

  • The current wave c has briefly pierced above a resistance at $69.67
Published August 17, 2021

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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