Brent oil may drop more to $70.47
- It could be technically interpreted as a break below $71.86.
SINGAPORE: Brent oil may drop more to $70.47 per barrel, as it has broken a support at $71.86.
The drop on Wednesday was due to a contract switch on the continuous chart.
However, it could be technically interpreted as a break below $71.86.
Brent oil may retest resistance at $73.58
The break opened the way towards $70.47. It was accompanied by a big gap which signals a strong drop over the next few days.
With all these bearish signals in place, it is time to conclude that the uptrend from $64.60 is over.
Either oil has started a deep correction or the downtrend from the July 6 high of $77.84 has resumed.
A break above $71.86 may lead to a gain limited to $72.51.
On the daily chart, oil failed to break a resistance at $73.69.
The failure could have triggered a drop towards $66.98-$69.06 range.
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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