Brent oil may revisit its July 25 low of $101.64 per barrel, following its second failure to break a resistance at $107.64.
The failure reflects a very cautious market sentiment.
The subsequent drop has wiped out the gain on Tuesday.
It is really doubtful that the rise from $101.64 had been driven by a wave c.
Brent oil biased to fall to $99.46
Either the consolidation within a range of $101.64 to $107.46 has extended or the downtrend from $120.41 has resumed.
Under both scenarios, oil is expected to approach $101.64.
A break above $105.71 could lead to a gain into $106.67-$107.46 range.
On the daily chart, oil looks neutral in a range of $100.61 to $107.46.
A break above $107.46 could lead to a gain into $110.51-$114.30 range, while a break below $100.61 could confirm the continuation of the downtrend towards $94.50.
Given that the downtrend from $125.19 has been driven by a wave (C) which is much shorter than the wave (A), any further rise simply looks suspicious.
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