SINGAPORE: Brent oil may retest a resistance at $76.62 per barrel, as it has almost recovered from the Dec. 10 low of $73.80.
The nature of the rise from this low remain unclear.
It could have been driven by a wave a or wave b. In the case of a wave a, oil is expected to break $76.62 and rise towards $80.40.
The gain will end around $76.62 if it is driven by a wave b.
Brent oil may drop into $71.88-$72.69 range; bearish next week
An inverted head-and-shoulders indicates a target of $80.40, shedding some light on the following move.
Support is at $75.20, a break below which could cause a fall into $73.50-$74.51 range. On the daily chart, oil managed to hover above a pivotal level of $73.50.
The drop from the Dec. 9 high of $76.70 looks like a pullback towards $73.50.
Oil may test the immediate resistance at $77.96, a break above which could lead to a gain to $81.57.
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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