SINGAPORE: Brent oil may break a resistance at $64.03 per barrel, and bounce more towards the next resistance at $64.72, as it failed to break a support at $62.93.
The support is provided by the 61.8 percent retracement of the rally from $61.13 to $65.83. The drop from $65.83 looks too sharp to sustain. It could be further reversed.
The sharp fall makes the rally look more like a corrective cycle. However, it is too early to conclude that the medium-term uptrend from the June 21 low of $44.35 has reversed.
Support is at $63.48, a break below which could cause a loss to $62.93.
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