SINGAPORE: Brent oil may bounce to $67.39 per barrel before resuming its downtrend, as suggested by a projection analysis and the hourly RSI.

The contract found a temporary support at $64.46, the 114.6%projection level of a downward wave (c) from $76.38. The bullish divergence on the hourly RSI indicates a further bounce from the current level.

The bounce will have little impact on the steady downtrend, which may extend into $59.55-$62.01 range, as the wave c did not complete around $65.98.

A break below $64.46 could confirm the continuation of the trend towards the target zone.

On the daily chart, oil managed to hover above a trendline rising from the April 22, 2020 low of $15.98. The support established by this trendline, along with the one at $64.57, has triggered a pullback towards a resistance at $67.90, the 23.6% retracement of the uptrend from $35.74.

Based on this retracement analysis, the downtrend may resume towards $61.76, once the pullback is over.

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