Brent oil may approach a resistance at $77.40 per barrel again, as it refused to fall to its May 15 low of $73.49. The strong recovery of the price from the Monday low of $74.55 displays a disorientation of the market, which swung between seemingly bearish mood on May 19 and a bullish sentiment on Monday.
This could be due to an incomplete consolidation within an ascending triangle, which is contracting to a point.
The upper trendline of the pattern indicates a target of $77.40.
It is hard to confirm the nature of this triangle before market gets out of the narrow range of $74.98 to $77.40.
The more convincing gain towards $77.40 has little value in telling the following direction as well. Signals on the daily chart are also a mess, because oil is stuck in a neutral range of $73.82 to $77.56.
Brent oil may revisit May 15 low of $73.49
It seems that there is no better card to play but to simply wait for an escape of the price from the range. Even though the near-term move remains unclear, the downtrend from $125.19 still looks steady.
The steadiness may remain even if oil could break $77.56 and rise to $80.72.
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