SINGAPORE: Brent oil is biased to rise above a neutral zone of $118.87 to $120.66 per barrel, and extend its gains to $122.25.
The drop from the Monday high of $121.95 is classified as a pullback towards an inverted head-and-shoulders, which suggests a target of $123.91.
Strategically, the target will be available only when oil stands firm above a resistance at $120.66.
A break below $118.87 may open the way towards $117.35-$117.80 range.
Brent oil may test resistance zone of $122.25-$122.42
On the daily chart, the black candlestick on Monday signals a temporary dissipation of the bullish momentum.
A retracement analysis marks a neutral zone of $118.03 to $123.01.
A break above $123.01 will confirm the continuation of the uptrend towards $139.13, while a break below $118.03 could be followed by a drop towards $113.05.
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