SINGAPORE: Brent oil may break a support at $72.33 per barrel and fall towards $70.98, as suggested by its wave pattern and a projection analysis.
The correction from the July 6 high of $77.84 is riding on a wave IV, which looks sideways. It has three component waves. The third wave labelled c has resumed, after a pause around a support at $72.33.
This wave c is unfolding towards $70.98. Resistance is at $73.17, a break above could lead to a gain into $73.85-$74.52 range.
On the daily chart, oil has broken a support at $73.50.
The break opened the way towards $70.75, which is near $70.98 (hourly chart).
A rising channel suggests a lower target of $68.43, which will be available when oil breaks $70.75.
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