- The reversal signals a continuation of the uptrend.
SINGAPORE: Brent oil may break a resistance at $61.43 per barrel and rise into the $61.74-$62.23 range, driven by a powerful wave (3)-3.
This wave has a fierce character. It may be equal to or longer than the wave (3)-1, and may travel to or above $64.
A projection analysis on the uptrend from $54.60 reveals a resistance at $61.24, the 314.6% level, which is much stronger than expected.
This barrier triggered a correction, which is a bit beyond expectation as well. However, this deep correction has been quickly reversed.
The reversal signals a continuation of the uptrend.
Based on the depth of the correction, oil may travel to $62.23. On the daily chart, the correction made little impact on the bullish candlestick pattern, as the 7th white candle formed on Tuesday, since Feb. 1.
A rising trendline points to a target of $62.50, the 400% projection level of an uptrend from $39.34. However, this wave may extend far beyond $62.50 as well.
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