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Brent oil may test a support at $66.40 per barrel, with a good chance of breaking below this level and falling into the range of $65.64-$66.09.
The support is identified as the 86.4% projection level of an upward wave c from $63.76. This wave could have peaked around $67.53. The developing wedge looks like a top pattern, which suggests a target around $65.64.
A rise above $67, however, could confirm the wedge as a bullish continuation pattern, and a target at $67.98 will be established accordingly.
On the daily chart, oil is expected to pull back towards a former resistance at $65.79, the 38.2% retracement on the uptrend from $49.93 to $75.60.
A break below $65.79 could signal the completion of a wave B from the June 5 low of $59.45. A downward wave C would then take over to drive the price 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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