Brent oil may break a resistance at $76.45 per barrel, and rise to $77.52. The bounce from the Tuesday low of $74.72 looks so strong that it suggests a completion of the fall from Monday’s high of $78.73.
A projection analysis reveals a close relation of the bounce to the preceding rise from $71.39.
Could the rise have extended? The higher oil rises, the more likely the extension is. Presumably driven by a wave c, oil may climb into a wide range of $79.26-$82.06.
Support is at $75.79, a break below which could trigger a drop into $74.72-$75.23 range.
On the daily chart, a long-shadowed doji formed on Tuesday above a support of $73.82.
Brent oil may retest resistance $78.63
The candlestick pattern symbolizes the reluctance of the market to leave the narrow consolidation range of $73.82-$77.56.
A break above $77.56 could confirm a double-bottom and a target of $83.63.
Comments
Comments are closed.