SINGAPORE: Brent oil may climb into a range of $86.64-$87.37 per barrel, as it has cleared a resistance at $85.14.
The resistance is identified as the 161.8% projection level of a bigger wave C from $70.43.
It was strengthened by another one at $85.04, the 100% projection level of an upward wave (c) from $77.55.
The break above these resistances is a major advance. It opens the way towards $86.46-$87.37 range.
A break below $85.04, now a support, may cause a fall into $83.27-$84.02 range.
On the daily chart, the uptrend remains steady within a channel, which suggests a target range of $89.63-$92.69. However, it is doubtful that oil could fulfil this target without a correction first.
Such a correction has been missing on the steep rise from the Aug. 23 low of $64.60. It may be triggered by the resistance at $86.74.
Even if the resistance fails to cause a correction, market is expected to be much more volatile around this level.
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.
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