SINGAPORE: Brent oil may rise towards a $87-$87.77 range, as it has broken a resistance at $85.77 per barrel.
The break confirms an uptrend from $73.26. Based on the depth of the correction triggered by this resistance, oil may rise to $88.50.
However, the resistance at $87 could not be ignored. It works with another one at $86.74, the Oct. 3, 2018 high, to form a strong barrier.
Oil rises modestly as US crude stockpiles dwindle
Oil may experience another correction similar to the one from the Oct. 18 high of $86.04 when it climbs up to the barrier. A break below $85.77, now a support, may cause a fall towards the $83.76-$85 range.
On the daily chart, oil has broken a key resistance at $85.17.
The break opens the way towards $89.63.
However, the resistance at $86.74 stands in the way. There might be an intense fight between bulls and bears around this level.
The current speculation is this resistance may trigger a pullback towards $85.17.
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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