SINGAPORE: Brent oil may break a resistance at $84.02 and rise to $85.04, as it has found a support at $82.18 per barrel.
A target at $81.29 looks doubtful, which is suggested by a rising channel. It will only be resumed when oil drops to $82.18 again.
Even though there is early sign of the uptrend continuation, the resumption may not be confirmed until oil breaks $84.02, because the bullish momentum does not look strong enough to confirm the continuation.
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A break below $82.18 could open the way towards $80.41-$81.29 range. On the daily chart, the uptrend remains steady within a channel.
Oil is expected to test a strong resistance range of $85.17-$86.74.
It is more likely to pause around this zone than to overcome this barrier and shoot higher as the rise from the Aug. 23 low of $64.60 has not been disrupted by a decent correction.
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