SINGAPORE: Brent oil may fall into a range of $79.59-$80.40 per barrel, following its failure to break a resistance at $83.04.
The bearish divergence on the hourly MACD worked on the uptrend. The divergence is expected to be further discounted by the subsequent drop.
It is not very clear if the uptrend from the December 2021 low of $65.72 has reversed. The slowed rise does suggest the formation of a peak.
A break above $82.10 could lead to a gain into $83.04-$84.05.
On the daily chart, oil is struggling around resistance at $81.57 and a falling trendline.
The behaviour of the market around this resistance is a key to the following direction.
The uptrend may continue to extend towards the Oct. 25, 2021 high of $86.70 if oil could stand firm above $81.57 over the next few days.
A close far below $81.57 on Monday could signal a failure to overcome this barrier. Oil could then fall 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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