SINGAPORE: Brent oil may retest a resistance at $90.95 per barrel, a break above which could lead to again to $92.58.
The uptrend could be extending toward $94.20, as pointed by a rising trendline.
The depth of the correction from the Jan. 20 high of $89.50 suggests a lower level of $92.58.
Wave pattern indicates the progress of a wave 5, the fifth wave of a five-wave cycle from $77.04.
This wave is roughly equal to the wave 1.
US oil may retest resistance at $88.62
Such a relation suggests a completion of the cycle.
However, the ending point of the wave 5 is generally defying predication.
Until a convincing reversal signal comes out, the basic assumption is that the uptrend remains steady.
Support is at $89, a break below which may cause a fall into a wide range of $85.68-$88.31.
On the daily chart, oil seems to have broken a resistance at $89.63.
It is supposed to gain more into a range of $92.69-$96.84, as pointed by the upper trendline of an expanding wedge.
A close below the Thursday low of $89 could confirm the break above $89.63 was false.
A bearish target of $85.17 will be established accordingly.
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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