Brent oil may retest a resistance at $78.63 per barrel, a break above which could lead to a gain to $79.39. A projection analysis on the rise from $74.18 reveals an ultimate target of $79.39 for the current wave c.
The exhaustion gap forming on Monday suggests the final effort of bulls to push the price up.
Instead of maintaining its momentum to keep on rallying, oil may end its bounce below $79.39. The difficulty is to pin the exact ending point.
The rise may complete around either $79.39 or $78.63.
A break below $77.40 could be the very early signal that a peak has formed around $78.63. On the daily chart, oil seems to be loosing its momentum around a resistance at $77.56.
Brent oil may fall into $71.99-$72.83 range
The rise from the May 15 low of $73.49 is tentatively classified as an extension of the bounce from the May 4 low of $71.28.
The downtrend from $125.19 remains intact.
A trend reversal will not be considered until oil breaks $80.72.
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