Brent oil may spike to $87-$87.77 range, bulls' guerrilla war

SINGAPORE: Brent oil may rise into $87-$87.77 range as it broke a resistance at $85.77 per barrel.

The resistance is identified as the 238.2% projection level of an uptrend from $73.26. Following the two failed failures last week, oil may have succeeded in overcoming this barrier in its current attempt.

The resistance zone of $87-$87.77 range is strengthened by another one at $86.74, the Oct. 3, 2018 high.

Oil prices drop; Brent on track for first weekly dip in seven

Even though oil may climb up further, it is very doubtful that the gains could extend above the range.

Most likely, this is going to bulls' guerrilla war, with a spike-and-fall ending. Support is at $84.53, a break below which could cause a fall into $82.52-$83.76 range.

On the daily chart, oil appears to have broken a resistance at $85.17.

Even though the break has theoretically opened the way towards a higher target range of $89.63-$92.69, the resistance at $86.74 is shadowing this victory.

Oil looks somehow shaky, due to the steep rise from the Sept. 10 low of $70.94.

The rise has not been disrupted by a decent correction, which may occur around $86.74.

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