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Brent oil may seek support in $71.38-$71.62 zone

SINGAPORE: Brent oil may seek a support in a zone of $71.38-$71.62 per barrel, and retest a resistance at $72.71 thereafter.

The current fall is classified as a pullback towards the March 8 high $71.38, which falls within a support range of $70.95-$71.62.

Given that the fall is driven by a wave 4, which will be reversed by an upward wave 5, the fall may end above $70.95. A continuation of the uptrend will be confirmed when oil breaks $72.71.

On the daily chart, the uptrend remains intact and is extending towards $75, as suggested by a bullish wedge. A rising trendline points at a much higher target of $85.17.

Oil may take some time to fulfil these targets, as its rise is rather slow. Volatility may keep low over the next few weeks as well.

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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