TECHNICALS – Brent Oil May Retest Resistance at $42.37
SINGAPORE, July 2 (Reuters) – Brent oil may retest a resistance at $42.37 per barrel, a break above which could lead to a gain to $42.92.
The resistance is identified as the 100% projection level of an upward wave c from $40.04. This wave has been unfolding within a rising channel which remains intact.
The channel suggests a possible extension of the wave c towards $43.26-$43.81 range. A high-low bottom forming between June 25 and June 29 also indicates a target of $43.81.
Support is at $41.48, a break below which could cause a fall into a $40.93-$41.21 range.
On the daily chart, oil is retesting a key resistance zone of $42.89-$43.86, which is formed by the 38.2% retracement of the downtrend from $86.43 to $15.98 and the 50% retracement of the downtrend from $71.75 to $15.98.
A break could open the way towards $50.45.
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