Brent oil may fall into $76.62-$77.77 range
- A realistic target zone will be from $76.62 to $77.77
SINGAPORE: Brent oil may fall into $76.62-$77.77 range, following its failure to break a resistance at $80.40.
The resistance is identified as the 161.8% projection level of an uptrend from $69.24.
It is strengthened by another one at $80.26, the 100% projection level of a wave (c) from $69.28.
This wave could have completed. The uptrend has thus lost its momentum. A deep correction seems to have started, which may extend to $71.88, as pointed by a rising channel.
A realistic target zone will be from $76.62 to $77.77.
A break above $80.40 could lead to a gain to $81.86. On the daily chart, the doji on Dec. 29 and the spinning top on Dec. 28 signal the formation of a temporary top.
The break above $77.96 looks doubtful. Oil may pull back towards this level.
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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