SINGAPORE: Brent oil may test a support at $83.04 per barrel, a break below could cause a fall into the range of $81.41 to $82.10.
A temporary top formed around a resistance at $84.67, following oil's repeated failures to break this level.
The failures also marked the completion of a five-wave cycle from $69.28.
A rising wedge has been more or less confirmed as a top pattern. Oil is expected to first drop to the lower trendline support around $82.10 and then break this level to fall more.
A break above $84.67 may not trigger any impressive gains, most likely, the upside will be limited to $85.68.
Oil dips as investors eye US crude release, China demand concerns
On the daily chart, oil failed to break a resistance at $85.17.
The failure may cause a drop to $81.57. A rising channel points at a lower target of $77.96.
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