Brent oil may rise into $88.82-$89.59 range
Brent oil may rise into a range of $88.82-$89.59 per barrel, driven by a wave c.
The combined effects of oil output cut and a contract switch have distorted the chart a bit.
However, the basic principle still applies that price discounts everything.
The bounce from the Sept. 26 low of $83.65 may have extended. Three waves make up the bounce. The wave c is unfolding towards $90.35.
Strategically, the target zone of $88.82-$89.59 will be confirmed when oil breaks the nearest resistance at $87.88.
Immediate support is at $87.29, which is too near to make sense.
Brent oil may test support at $87.76
A realistic support is fixed at $86.80, a break below which may signal a continuation of the fall from $90.12.
On the daily chart, oil may keep hovering above $83.63 which is regarded as a strong support.
When put in a bigger picture, the support looks less important, as the whole uptrend from $15.98 has reversed.
A retracement analysis indicates a target of $77.56.
Bulls are expected to give up the stronghold around $83.63 at a certain point of time.
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