Brent oil may fall into $65.22-$65.73 range
- The downward wave c is yet to develop, which may completely reverse the wave b.
SINGAPORE: Brent oil may fall into a range of $65.22-$65.73 per barrel, as it faces a strong resistance zone of $66.80-$67.14.
The sideways move on Thursday represents an insufficient bullish momentum, which could be too weak to drive the price above this zone. The bearish divergence on the hourly RSI suggests a slim chance of a further gain as well.
Most likely, the contract would retreat towards $65.73. A break above $67.14 could open the way towards $67.66-$68.42 range.
On the daily chart, the rise may have been driven by a wave b, the second wave of a three-wave cycle from $71.38.
The downward wave c is yet to develop, which may completely reverse the wave b.
Oil may retreat towards $62.91 even if the uptrend has resumed, as the trend may develop within a rising channel.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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