SINGAPORE: Brent oil may break a resistance at $95.90 per barrel, and rise into $96.84-$97.85 range.
The strong surge on Feb. 14 confirmed the continuation of the uptrend from $69.24. The trend may develop far above the lower channel, as suggested by its strong momentum.
The duplicated upper channel points at a target zone of $101.10-$102.11. However, this target zone will not be confirmed until oil breaks a resistance at $96.84.
Instead of supporting a further gain, wave pattern suggests a downside bias, as a wave v could be completing around $95.90.
Brent oil may test support at $89.94
The completion of this wave will also mark the end of wave (3) of a higher degree.
Under this scenario, oil would fall towards $92, driven by a wave (4). A break below $94.20 could signal the progress of the wave (4).
On the daily chart, oil has broken a resistance at $94.70 and the upper trendline of an expanding wedge.
The break appears to be a milestone to bulls, as they finally escape from the wedge.
However, in some cases, the break could quickly turn out be false, and the market sentiment could swing drastically as well.
A break below $92.69 may signal an uptrend reversal.
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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