SINGAPORE: Brent oil is expected to test a resistance at $68.86 per barrel, a break above which could lead to a gain to the next resistance at $69.70.
These resistances are identified respectively as the 23.6 percent and the 14.6 percent retracements of the uptrend from $61.77 to $71.05.
The target at $66.41 based on a head-and-shoulders developing between March 21 and April 2 was narrowly missed. The following decent recovery of the price from the April 4 low of $66.69 signals a completion of the drop from $71.05.
It is not very clear if oil could break above $68.86 at its first attempt. A failure could cause a loss towards $67.51. Once oil breaks below this level without testing $68.86, the target at $66.41 will be resumed.
No information in this analysis should be considered as being business, financial or legal advice.
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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