Brent oil may retest $92.53 after shallow drop
Brent oil may retest a resistance at $92.53 per barrel, probably after a correction to $90.51.
The rise from the Monday low of $88.50 is presumed to be driven by a wave C, the third wave of a three-wave cycle from $87.24.
This wave may either end around $93.79 or extend to $97.06. Before retesting $92.53, oil may retrace to $90.51.
The retracement is expected to roughly mirror the move on Friday.
A break below $90.51 may signal the continuation of the downtrend towards $88.50. A break above $92.53 could lead to a gain to $93.78.
Brent oil may extend gains to $93.78
On the daily chart, the pattern from the Sept. 8 low of $87.24 looks like a small high-low bottom.
How reliable this pattern is will largely depend on the move on Tuesday.
A fall below $89.28 could make this bottom invalid. After all, the downtrend remains steady, which may extend to $83.63.
The small high-low bottom is considered as a part of the consolidation triggered by the support at $89.28, instead of a reversal pattern.
Comments
Comments are closed.