SINGAPORE: Brent oil may retest a resistance at $ 69.87 per barrel, a break above could lead to a gain at $ 71.38.
The contract has broken a lower resistance at 68.76. The next resistance will be at $ 69.87.
The trending signals look a bit confusing, as the uptrend from 60.27 was thought to have reversed.
However, the recovery of the price from the May 7 low of $ 67.39 is strong enough to indicate a continuation of the uptrend.
A break above $ 69.87 will not only open the way towards 71.38, but also confirm a wedge, which indicates a target around $ 80.
A break below $ 68.76, now a support, may cause a fall to 67.14. On the daily chart, with oil approaching a resistance at $ 70.75 again, it is doubtful that the contract retraces towards the March 23 low of 60.27.
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.