Brent oil may drop to $70.47
- The divergence makes a break above a resistance at $71.86 doubtful
SINGAPORE: Brent oil may drop to $70.47 per barrel, as suggested by a bearish divergence on the hourly RSI.
The divergence makes a break above a resistance at $71.86 doubtful. A bullish target of $73.58 has to be temporarily aborted.
The sharp rise from $64.60 has not been disrupted by any obvious correction yet. Such a correction could be occurring.
Most likely, oil would retreat to $70.47 first.
The target of $73.58 will resume if the contact could climb above $72.42.
On the daily chart, the candlestick on Wednesday looks much smaller than the preceding two. It signals a dissipation of the bullish momentum. A black candlestick may form on Thursday.
The uptrend from $15.98 remains steady, as suggested by an intact trendline and the surge from the Aug. 23 low of $64.60.
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