SINGAPORE: Brent oil may retrace towards $73.50 per barrel, following its failure to break a resistance at $75.66.
In terms of ratio analysis, this 93.6% projection level is generally insignificant.
However, it is strengthened by a similar one established by a falling trendline, making it more effective.
The downtrend from the Dec. 9 high of $76.70 would be regarded as having resumed, once oil falls to $73.50.
A break above $75.66 could lead to a gain into $76.62-$77.77 range.
On the daily chart, trending signals remain unclear as oil is struggling around a pivotal support of $73.50, indecisive in choosing its next direction.
A flat consolidation will be considered bullish if it centres around this level for a few days.
A rise close to $77.96 could signal the continuation of the uptrend as well.
A close far below $73.50 on Friday will be bearish.
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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