Brent oil may retest a support of $75.11 per barrel, a break below which could open the way towards $73.65. The deep fall from the Thursday high of $78.50 strongly suggests a completion of a wave c and the whole bounce from $71.28.
A presumed bullish wedge turned out to be a bull trap.
The little hope for a further bounce towards $79.81 had evaporated after oil broke the key support of $77.40.
With the contract having pierced below the lower trendline of the wedge, it might be the time to anticipate a deep fall towards $71.28.
The wave b ended at $73.49 which serves as a target in the middle.
Resistance is fixed at $76.65, a break above which may lead to a gain to $77.40.
Brent oil may test resistance at $78.32
On the daily chart, the attempt to break $77.56 proved failed.
Oil is expected to retrace towards $73.82. It is not very clear if the contract could break this support.
At least it becomes clearer that the wave (D) from $70.12 looks unlikely to extend.Business Recorder
Leave a Reply