TECHNICALS – Brent Oil May Retest Resistance at $42.37

brent-may-retest-resistance

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.

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 analyses.