SINGAPORE: Brent oil may retreat to $82.18 per barrel, following its failure to break a resistance zone of $85.04-$85.14.
The zone is formed by the 100% projection level of an upward wave (c) from $77.55 and the 161.8% projection level of an uptrend from $70.43.
Either of these resistances is strong enough to trigger a correction.
Even though it is not very clear if the current fall would be as strong as the one from the Oct. 6 high of $83.47, a weaker correction could extend to $82.18 as well.
A break above $84.02 may lead to a gain into $85.04-$86.13 range. On the daily chart, oil is riding on a steady uptrend within a channel, which suggests a target around $90.
The correction on the hourly chart is interpreted as a pullback towards a former resistance at $81.57, now a support.
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