SINGAPORE: Brent oil may retest a resistance at $83.05 per barrel, as the correction from the Nov. 10 high of $85.50 has completed.
Oil managed to stabilize in a support zone of $80.48-$81.14.
The stabilization signals a completion of the drop, which is classified as a deep correction against the rise from the Nov. 4 low of $80.20.
Even if this correction extends unexpectedly, the current bounce may consist of three waves. So far, only two have unfolded. The wave c is expected to travel into $83.76-$84.53 range.
A break below the support zone of $80.52-$81.14 could confirm the continuation of the downtrend towards $78.56.
On the daily chart, oil found a support at $81.57, one of the projection levels on the uptrend from $35.74. It is likely to rise toward $85.17.
A fall below the Tuesday low of $80.67 could confirm the extension of the downtrend towards $73.50-$77.96 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.
Comments
Comments are closed for this article.