SINGAPORE: Brent oil may fall to $59.92 per barrel, as it could have completed an uptrend from the Dec. 26, 2018 low of $49.93.
The trend consists of five waves. The fifth wave labeled (5) became a failed wave, as it did not travel above the Jan. 21 high of $63.15, which is the peak of the wave (3). It is clearer that the orthodox top of the trend is at the Jan. 30 high of $62.67.
Resistance is at $62.50, only a break above which could confirm the extension of the uptrend.
On the daily chart, a tiny head-and-shoulders is forming below a key resistance at $63.96, the 38.2 retracement on the uptrend from $27.10 to $86.74. Small as it is, the pattern strongly suggests the end of the bounce from $49.93.
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** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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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