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.
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