SINGAPORE: Brent oil may break a resistance at $91.57 per barrel, and rise to $92.58, as the uptrend has resumed.
The resistance triggered a correction which has been driven by a shallower-than-expected wave (4).
The surge on Thursday marked the completion of this wave, which was supposed to travel towards $85.68.
The upwards wave (5) is developing.
A projection analysis on the uptrend from $69.24 still works well in revealing a few targets. The most realistic target is $92.58.
Brent oil may drop into $85.68-$87.30 range
Support is at $90.95, a break below which could cause a fall into $89-$89.94 range.
On the daily chart, oil seems to be riding on a powerful wave iii, which is extending $92.69-$94.70 range, as pointed by the upper trendline of an expanding wedge.
This wave is unlikely to extend far above $94.70, as it is subject to a deep correction, which has been missing since Dec. 20.
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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