Brent oil may extend gains to $86.69 per barrel, as it has broken a key resistance at $84.96. The resistance is identified as the 61.8% projection level of an upward wave C from $77.61.
This wave could either end around $84.96 or extend to $89.50.
With oil having climbed above $84.96, the chance of a further rise towards $89.50 has greatly increased.
A close below $84.96 on Monday could signal the break above this level was false. A bearish target zone of $82.15-$83.56 will be established accordingly.
On the daily chart, the support of $77.56 turned out to be exceptionally strong, which is coincidentally provided by the 114.6% projection level of a wave (C) from $125.19 and the 50% retracement of the uptrend from $15.98 to $139.13.
Brent oil price broadly steady at $80/bbl amid rising US stockpiles
The current rise is still classified as a part of an extended consolidation from the Dec. 9, 2022 low of $75.11.
The rise may end in the resistance zone of $86.54-$89.58.
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