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Brent oil is expected to break a support at $68.74 per barrel and fall towards the next support at $67.01.
The contract is riding on a wave c or wave 3 from $73.27. Both of these waves are capable of travelling to $68.74. However, they may extend much further.
A retracement analysis on the uptrend from the December 26, 2018 low of $49.93 to the April 25 high of $75.60 suggests a much lower target at $65.79, the 38.2 percent level, as it is pretty certain that the support at $69.53 could be broken, once oil falls to $68.74.
On the daily chart, the current fall is regarded as a continuation of the preceding downtrend from $86.74. Driven by a powerful wave (C), oil may plunge into a range of $52.85-$61.54, formed by its 61.8 percent and the 38.2 percent projection levels.
(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.)
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