SINGAPORE: US oil may test a resistance at $84.94 per barrel, a break above could lead to a gain into the $85.66-$86.64 range.
The Oct. 20 high of $84.25 has been surpassed.
The uptrend from the August 23 low of $61.74 has thus been confirmed.
The trend is presumed to be riding on a wave 3 from $79.42, which could extend to $86.64.
This wave makes a part of a bigger wave (5), which may extend a lot, if the current wave count turns out to be correct.
Oil hits multi-year high above $86, then pulls back
However, the unusual consolidation from the Oct. 20 high of $84.25, which was shaped into an expanding wedge, undermines this wave count.
Support is at $83.88, a break below which could cause a fall into $81.12-$83.03 range. On the daily chart, oil has broken a resistance at $83.94.
It is expected to test the next resistance at $85.14.
A break could lead to a gain into $86.42-$87.21 range.
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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