Markets

Brent oil may retest support at $68.08

  • On the daily chart, the consolidation from the March 8 high of $71.38 is being shaped into a wedge which looks like a bullish continuation pattern, to be followed by a rally.
Published May 27, 2021 Updated May 27, 2021 12:05pm
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SINGAPORE: Brent oil may retest a support at $68.08 per barrel, a break below which could cause a fall to $67.41.The rise from $64.57 could be too sharp to sustain.

The current sideways move confirms a dissipation of the bullish momentum.

A retracement analysis on the rise reveals a target zone of $68.87-$67.41. A break above $69.17 may signal the continuation of the uptrend towards $70.24.

On the daily chart, the consolidation from the March 8 high of $71.38 is being shaped into a wedge which looks like a bullish continuation pattern, to be followed by a rally.

The slowdown of the rise around a resistance at $68.43 suggests a fall towards $66.29, around which a tiny high-low bottom may complete, to pave the way for a strong rally.

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