SINGAPORE: US oil may revisit its Oct. 25 high of $85.41 per barrel, as a correction from $85.41 is shaped into a flat pattern.
Three waves make up the flat. They are expected to be roughly equal. The wave b could travel to $85.41, to be then reversed by a wave c.
However, there is another bullish scenario that the uptrend may have indeed resumed.
A surge above $85.41 would confirm the extension.
Immediate support is at $83.88, a break below which could cause a fall into $81.42-$82.94 range.
On the daily chart, with oil approaching a resistance at $85.14 again, the bearish divergence on the RSI will have little impact. It could be violated very soon.
A rising trendline suggests a target zone of $88.50-$90.57 which will only be available when oil breaks $85.14.
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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