SINGAPORE: Brent oil may retest a resistance at $91.57 per barrel, a break above which could lead to a gain to $92.58.
The uptrend could be extending toward $94.20, as pointed by a rising trendline.
The depth of the correction from the Jan. 20 high of $89.50 suggests a lower target of $92.58.
The correction triggered by the resistance at $91.57 seems to have ended around a support at $89.94.
The uptrend will be deemed intact, as long as oil hovers above the support.
Oil hits fresh 7-year highs on supply concerns
A break below $89.94 could signal a completion of a wave 5, and a bearish target zone of $87.30-$89 will be established accordingly. On the daily chart, oil has broken a resistance at $89.63.
It is supposed to gain more into a range of $92.69-$96.84, as pointed by the upper trendline of an expanding wedge.
The support at $89.63 is close to $89.94 (hourly chart).
These two supports play an important role in determining the reversal of the uptrend.
A break below $89.63 may open the way towards $85.17.
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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