Comments
Brent oil looks neutral in a range of $43.72-$44.54 per barrel, and an escape could suggest a direction.
The range is formed by the 14.6% and the 7% projection levels of a downward wave C from $45.30. A break below $43.72 could cause a fall to $42.75, while a break above $44.54 could lead to a gain into $45.30-$45.98.
The nature of the gain on Monday remains unknown. It could be regarded as a bounce against the drop from $45.30, or a resumption of the preceding uptrend from the Nov. 2 low of $35.74.
On the daily chart, the rise was due to an ascending trendline. It seems the uptrend remains steady. However, oil failed to break a resistance at $44.39. It is now sandwiched in a narrow range from $42.07 to $44.39.
Signals will become clearer when oil gets out of the range.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
** 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.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.