SINGAPORE: Brent oil may drop into a range of $85.68 to $87.30 per barrel, as a five-wave cycle from $77.04 has completed.
The fourth wave, the wave 4, ended around $85.68, which works as a target.
Three waves make up the current drop. The wave c is unfolding towards $85.68.
A realistic target will be $87.30, which will be confirmed when the contract breaks the nearest a support at $88.31.
Resistance is at $89.94, a break above could lead to a gain into $90.95-$91.57 range.
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On the daily chart, oil has broken a support at $89.63.
It is supposed to fall to $85.17, near $85.68 on the hourly chart.
The current readings indicate the progress of a wave iv, which will be reversed by an upward wave v.
The uptrend will remain intact, as long as oil stays above $85.17, a break below could signal a reversal of the trend.
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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