SINGAPORE: Brent oil may rise more into a range of $110.76-$112.32 per barrel, as its consolidation within a wedge has extended.
The extension was confirmed by the stronger-than-expected gain on Wednesday.
A total of five waves may make up the wedge.
The wave (e) is unfolding towards $113.63, which is pointed by the upper trendline of the pattern.
Immediate support is at $106.21, a break below which may cause a fall into $101.65-$104.17 range.
The wedge was regarded as a bearish continuation pattern.
It may turn out to be a bullish pattern once oil rises above $113.63.
On the daily chart, oil seems to be stuck in a neutral range of $99.48 to $114.84. It is really tough to figure out the following direction.
Brent oil may bounce moderately before falling
Trending signals will become clearer when oil gets out of the range.
The bullish engulfing pattern forming between Tuesday and Wednesday suggests a further rise on Thursday.
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