epaselect epa08348372 Pump jacks operate in the oil fields near Midland, Texas, USA, at sunrise 07 April 2020. Midland, Texas is a city in western Texas, part of the Permian Basin area. Low oil prices are reportedly causing also the gas prices to drop dramatically. EPA-EFE/LARRY W. SMITH

Brent Oil may Retest Support at $85.68

Brent oil may retest a support at $85.68 per barrel, a break below could open the way towards $83.04-$84.67 range.
There is a strong resistance at $89, which still holds firm under four attacks by bulls. A temporary top may have formed around this level.
Due to the slide below a rising trendline, the uptrend from $96.24 seems to have reversed. It remains unclear how much this trend could be reversed.
About 61.8% of the previous wave (a) was reversed by the wave (b). If this ratio works for the current drop, a bearish target of $74.80 could be established, which, unfortunately, looks too far away to be realistic.
An immediate target could be $84.67.
A further gain from the current level will be regarded as an extended pullback towards the trendline. The pullback may end below $88.31.
On the daily chart, the current correction could be of the same degree with the one from the Dec. 9, 2021 high of $76.70.
A rising channel suggests a further drop to $81.57.
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.

About Parvin Faghfouri Azar

Check Also

Europe Expected to Add 110 Gigawatts of Solar next Year!

The solar power market in Europe just continues to grow and grow and grow. And …

Leave a Reply

Your email address will not be published. Required fields are marked *