Brent oil may test resistance at $73.69

SINGAPORE: Brent oil may test a resistance at $73.69 per barrel, a break above which could lead to a gain to $77.84.

The consolidation triggered by this resistance has been confined within the narrow range of $71.13-$73.69. The sideways move over the past few days is regarded as a preparation of bulls to retest the resistance.

A break below $71.13, however, could be followed by a drop into $66.98-$69.06 range. A further fall below $66.98 would signal a continuation of the downtrend from $77.84.

The uptrend from $70.43 adopted an impulsive wave mode, consisting of five small waves. This mode suggests an extension of the uptrend above the Sept. 3 high of $73.69.

Immediate support is at $71.76, a break below which will not only cause a fall to $71.07, but also make the current wave count invalid.

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.