SINGAPORE: Brent oil may test a resistance zone of $85.04-$85.14 per barrel, a break above which could lead to a gain to $86.13.
The zone is formed by the 100% projection level of an upward wave (c) from $77.55 and the 161.8% projection level of a bigger wave C from $70.43.
The consolidation over the past few days could have prepared oil with the needed bullish momentum to retest the zone. Support is fixed at $83.27, a break below which could cause a fall into $81.29-$82.18 range.
Oil prices climb on power boost, set for multi-week gains
On the daily chart, the uptrend remains steady within a channel. However, oil faces another resistance zone of $85.17-$86.74, which is overlapping with the one on the hourly chart.
Oil may fail to break these zones and start a decent correction as such a correction has been absent on the rise from the Aug. 23 low of $64.60.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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