SINGAPORE: Brent oil may test a resistance at $83.22 per barrel, a break above which could lead to a gain to $84.55.
The surge on Tuesday looks strong enough to confirm a reversal of the downtrend from $86.70.
A retracement analysis shows that oil has briefly climbed above the 50% level of $82.14
Chances are it may extend gains into $83.22-$84.55 range.
A drop from the current level will be regarded as a pullback towards a falling trendline.
The pullback may be limited to $81.06.
A further drop could indicate the continuation of the downtrend.
On the daily chart, a pullback towards a long-term trendline falling from the 2008 high of $147.50 could have completed, as oil quickly recovered from the drop after stabilizing around a support at $77.96.
By end of this week, oil is likely to retest a resistance at $85.17.
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