SINGAPORE: Brent oil may test a resistance at $73.69 per barrel, a break above which could lead to a gain to $77.84.
The consolidation triggered by this resistance has been confined within the narrow range of $71.13-$73.69. The sideways move over the past few days is regarded as a preparation of bulls to retest the resistance.
A break below $71.13, however, could be followed by a drop into $66.98-$69.06 range. A further fall below $66.98 would signal a continuation of the downtrend from $77.84.
The uptrend from $70.43 adopted an impulsive wave mode, consisting of five small waves. This mode suggests an extension of the uptrend above the Sept. 3 high of $73.69.
Immediate support is at $71.76, a break below which will not only cause a fall to $71.07, but also make the current wave count invalid.
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