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Brent oil is expected to break a resistance at $62.38 per barrel and rise into a range of $63.19-$63.99, as a temporary bottom has formed at the June 5 low of $59.45.
The bullish divergence on the hourly RSI suggests an exhaustion of the downtrend. A falling channel indicates a further bounce into the range of $63.19-$63.99, formed by the 150 per cent and the 138.2 per cent projection levels of a downward wave (C) from $75.60.
Support is at $61.39, a break below which could cause a loss limited to $60.71.
On the daily chart, the temporary bottom looks more convincing around a key support at $59.74, the 61.8 per cent retracement on the uptrend from $49.93 to $75.60.
This analysis also marks a resistance at $62.77, which works together with the one at $62.38 on the hourly chart to form a resistance range.
A rise to $62.80 may confirm a break above the range, and the 38.2 per cent level at $65.79 will be targeted.
(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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