SINGAPORE: Brent oil may fall into a range of $85.68 to $86.49 per barrel, as it has broken a short rising trendline.
The break signals a reversal of the uptrend from $80.50. A tiny double-top has formed around a resistance at $89, suggesting a target of $85.68 as well.
The bearish divergence continues to build up on the hourly MACD. With oil having risen so much and experienced no decent correction, a perfect storm could be forming.
A break above $88.31 may lead to a gain into $89-$89.94 range.
Oil highest since 2014 as Turkey outage adds to tight supply outlook
On the daily chart, the drop looks like a pullback towards a support zone of $85.17 to $86.70, which slightly engulfs the zone of $85.68 to $86.49.
A break below $85.17 could open the way towards $81.57, as pointed by a rising channel.
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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