Brent may retest support at $75.11
May 26 (Reuters) – Brent crude may retest the $75.11 support level, a breakout of which could open the way to $73.65.
A deep fall from Thursday’s high of $78.50 indicates the end of wave C and a complete rebound from $71.28.
The alleged bull wedge turned out to be a bull trap. Faint hope for a further rebound to $79.81 evaporated after oil broke through key support at $77.40.
After breaking below the lower wedge trendline, it may be time to expect a deep drop towards $71.28.
Wave B ended at $73.49, which is the middle target. The resistance is fixed at $76.65 and a break above that could lead to an increase to $77.40.
On the daily chart, an attempt to break through the $77.56 border failed. The price of oil is expected to drop to $73.82. It is not entirely clear whether the contract is able to break through this support.
At the very least, it becomes clear that an extension of wave (D) from $70.12 seems unlikely.
* The analysis is based on data received with a delay, which may affect the forecast. For charts, use the code to get the original news.
** Wang Tao is a technical analyst for Reuters Commodities and Energy and speaks for himself. The information contained in this announcement does not constitute market, financial or legal advice. Readers should contact consultants for the products mentioned in this brief.
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