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Brent oil may test a support at $64.78, a break below which could cause a loss to $62.74 per barrel.
The support is identified as the 38.2% retracement on the downtrend from $73.40 to $59.45. Oil failed to break a resistance at $66.43. The failure confirmed the completion of a five-wave cycle from the June 18 low of $60.25. Further confirmation is a brief piercing below the June 27 low of $65.63.
The uptrend from the June 5 low of $59.45 could have reversed. Oil may retrace towards this level over the next few weeks. On the daily chart, oil is riding on a wave (C), the third wave of a big downtrend from the October 3, 2018 high of $86.74. A projection analysis reveals a support at $59.74 and a resistance at $65.79.
These two levels roughly define a price band for the bounce from $59.45. It seems that the bounce is ending around $65.79. The wave (C) may resume towards $59.74.
(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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