Brent oil biased to rise into $49.20-$49.50 range
- On the daily chart, the drop from the Dec. 4 high of $49.92 looks like the second pullback towards a support zone of $46.53-$47.41.
SINGAPORE: Brent oil is biased to rise into a range of $49.20 to $49.50 per barrel, as it could have completed a correction from the Dec. 4 high of $49.92.
The correction could be divided into three waves. Such a wave mode suggests an intact uptrend.
Strategically, the target range will be confirmed when oil breaks the resistance at $4.92, which is strengthened by a similar one established by a falling trendline.
Key support is at $48.42, a break below could cause a fall into the range of $47.49 to $47.94.
On the daily chart, the drop from the Dec. 4 high of $49.92 looks like the second pullback towards a support zone of $46.53-$47.41.
The pullback may have ended.
Resistance is at $48.92, a break above which could lead to a gain into $49.20-$49.50 range. On the daily chart, a bearish divergence formed on the RSI.
The divergence suggests that oil may pull back again towards a support zone of $46.53-$47.41.
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