Brent oil may test a support at $63.99, a break below which could cause a loss to $63.13 per barrel.
The support is identified as the 38.2 per cent retracement on the uptrend from $59.45 to $66.80. The trend has reversed around a resistance at $66.43, the 50 per cent retracement of the downtrend from $73.40 to $59.45.
Over the next one or two weeks, oil may fall towards $59.45. A realistic target could be $63.13 or $62.26. On the daily chart, oil is riding on a wave (C), the third wave of a big downtrend from the Oct. 3, 2018 high of $86.74.
This wave was disrupted by a bounce triggered by the support at $59.74, the 61.8 per cent retracement of the uptrend from $49.93 to $75.60. The bounce seems to have ended around $65.79, and the wave (C) has resumed towards $59.74.
(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 analysis.)
