Brent oil target of $70.25 aborted; further gains expected

SINGAPORE: A bearish target of $70.25 per barrel has been aborted for Brent oil, due to the rise on Wednesday.

The target was suggested by a double-top, which became invalid, following the surge above the its neckline. The nature of this surge looks confusing.

It could be a simple bounce against the preceding fall or a continuation of the uptrend from the Dec. 2 low of $65.72.

In either case, oil may gain more towards $76.62. Support is at $73.50, a break below could cause a fall into the range of $71.88 to $72.69.

Brent oil may fall to $70.25; fierce bear market looms

On the daily chart, oil is struggling around a pivotal support of $73.50, reluctant to slide into the price range defined by the lower channel.

The rise on Wednesday could be its last effort to maintain around this support, or a futile tussle to regain its posture to rally.

A further development of chart would offer a clearer picture.

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