SINGAPORE: Brent oil may fall into a range of $106.21 to $108.24 per barrel, as it failed a few times to break a resistance at $113.63.
The failures suggest the formation of a temporary top around this resistance.
Even though a projection analysis suggests a possible extension of the uptrend into a range of $118.05-$120.61, the journey towards this range could be zigzagging.
A rising channel points at a target of $108.24, a break below could open the way towards $106.21.
Immediate resistance is at $112.32, a break above could lead to a gain into $113.63-$114.84 range. On the daily chart, a retracement analysis reveals a similar resistance at $113.45, the 38.2% level.
The failure to break $113.45 has significantly increased the chance of a fall toward $107.38.
The drop is tentatively classified as a pullback towards a wedge.
Oil rises on Russian oil production constraints
It may end around $107.38.
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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