SINGAPORE: Brent oil may retest a resistance at $96.84 per barrel, a break above which could lead to a gain into $97.85-$99.48 range.
The contract reacted strongly around a former resistance at $95.90 on Monday.
However, the following recovery of the price was swift.
The chance of a drop towards the lower channel support of $91.40 has been basically wiped out.
Oil could have accumulated enough momentum to escape from the lower channel and climb into the upper channel.
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A break above $96.84 could confirm the escape.
Immediate support is at $95.21, a break below which could open the way towards a support zone of $93.39-$94.20.
A fall below this zone could be extended to $91.57.
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 valid. It may lead to a gain into $98.98-$101.30 range.
The break may turn out to be false, if oil suddenly breaks below $94.70.
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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