SINGAPORE: Brent oil may edge up to $102.80 per barrel, as it may take some time to reverse the uptrend.
The sharp drop from the Thursday high of $105.79 confirmed the completion of a small five-wave cycle from $90.12 and a bigger cycle from $69.21.
A temporary top has formed at $105.79. Both of these cycles are expected to be reversed further. However, bulls are not ready to completely surrender and may make a desperate attempt to push the price up.
Technically, the drop from $105.79 would consist of three waves. The current wave b could travel to any level until $105.37. The best bet is this wave may end around $102.80, to be totally or partially reversed by the downward wave c.
Brent oil may rise into $98.47-$99.48 range
A break above $102.80 could lead to a gain into the $104.22-$105.37 range.
On the daily chart, oil is trying to rebound within the narrow zone defined by the upper shadow of a shooting star forming on Thursday.
This candlestick itself is a strong reversal pattern, even though it most often needs a confirmation.
One point is clear that the bounce may be limited to $105.79.
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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