Brent oil may bounce moderately into a range of $84.16-$85.26 per barrel before resuming its fall towards the Nov. 28 low of $80.61. The contract managed to stabilize around $82.80 after a sharp drop.
The stabilization is likely to be followed by a weak bounce towards $85.26.
The bounce is considered as a part of the right shoulder of a presumed head-and-shoulders developing from $80.61.
This shoulder is expected to roughly match the left shoulder.
As a result, the bounce may end around $85.26.
A break below $82.80 could confirm the target of $80.61.
Oil falls nearly 3pc after data raises Fed interest rate worries
A break above $85.26, however, could suggest the formation of an inverted head-and-shoulders.
On the daily chart, oil pierced below a support of $83.63 again.
Loaded with strong bearish momentum, it is highly likely to break this support and fall into $73.82-$77.56 range.
The bounce triggered by the support made little impact on the downtrend, which seems to have resumed towards a medium-term target zone of $57.95-$63.02.
Comments
Comments are closed for this article.