SINGAPORE: Brent oil may fall into a range of $108.56-$110.27 per barrel, following its failure to break a resistance at $115.82.
The resistance is identified as the 100% projection level of the uptrend from $101.30, based on the preceding rise from the April 25 low of $99.48.
Due to this failure, oil returned into a wedge, which was thought to be bullish, suggesting a target of $124.79.
Strategically, this target has to be aborted temporarily. It will only be resumed when oil breaks above $115.82.
It is not very clear how deep the current correction would be.
Theoretically, it could extend to $102, as pointed by the lower trendline of the wedge.
Brent oil may rise into $116.75-$119.27 range
A realistic target could be either $110.27 or $108.56.
A break above $113.85 may lead to a gain into $115.82-$117.94 range.
On the daily chart, oil failed to get out of a neutral range of $99.48 to $114.84. It may retrace towards $106.89.
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