Brent oil signals mixed

SINGAPORE: Signals are mixed for Brent oil, as it failed to break a resistance at $95.21.

The resistance itself is not particularly meaningful in pointing at a direction. However, it is identical with another one established by a falling trendline.

The failure to break the trendline signals either a continuation of the downtrend from the Feb. 14 high of $96.87, which may develop into a double-zigzag mode, or the completion of the first rally from the Feb. 18 low of $90.12.

A drop below $92.58 or a break above the nearest resistance at $94.20 may offer a clearer picture. The bias could be towards the downside as the current wave (4) may travel to $88.02, the bottom of a preceding wave ii.

Brent oil retest support at $91.57

Signals on the daily chart also suggest a downside bias, as oil failed to break a resistance at $94.70.

It is unlikely to break the upper trendline of an expanding wedge and rise into $96.84-$98.98 range.

A downside wave iv could be unfolding towards the range of $85.17-$89.63, which will be reversed by an upward wave v.

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