Brent may pull back to the $103.50–$104.51 per barrel range

what happened

Newsmetry API reports that Brent oil may retreat to $103.50–$104.51 per barrel after failing to break resistance at $107.34. Wave c from $97.11 could finish near $107.34, its 138.2% projection, or extend to $109.08, the 161.8% level. The formation of a rising wedge points to an initial decline toward the target zone.

A subsequent recovery toward $109.08 will depend largely on support at $103.50. A break below that level could eliminate the prospect of such a move. The pattern near $97 resembles a high-low bottom, indicating a target of $109.08 and leaving room for wave c to extend. A move above $107.34 could clear the way toward that level.

On the daily chart, the market appears to have moved through resistance at $105.88, opening a path toward $110.24. The hourly-chart decline is expected to be short-lived, with the market potentially resuming its advance on Tuesday. The analysis was prepared by Wang Tao, a Reuters market analyst covering commodities and energy technicals, and is published exclusively on Workspace, a London Stock Exchange product. His views are his own; the analysis is not business, financial, or legal advice, and readers should consult their own professional advisers.

why it matters

The main levels for Brent are $103.50 and $107.34. The first may determine whether the pullback holds, while the second is the threshold for a possible continuation toward $109.08. The daily chart also points to $110.24.

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