Brent oil may fall to $70.25; fierce bear market looms
- Strategically, the target of $70.25 will be confirmed when oil breaks $72.69
SINGAPORE: Brent oil may fall to $70.25 per barrel, as suggested by a confirmed double-top.
The neckline of the pattern is around $73.60. The support at $72.69 triggered a pullback towards this line. A rise above $73.60 could temporarily make this pattern invalid.
Strategically, the target of $70.25 will be confirmed when oil breaks $72.69. The rise from Dec. 2 low of $65.72 consists of five waves, which look corrective in nature.
They will be reconsidered as impulsive waves if oil could rise above $75.20. This wave mode would suggest an extension of the uptrend towards $83.
US oil may retest $73.38; double-zigzag under formation
On the daily chart, oil fell below a pivotal level of $73.50. It is expected to drop more towards $54.62, as pointed by the lower channel. A realistic target will be $70.75.
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