Brent oil may test a resistance at $87.71 per barrel, a break above which could lead to a gain to $89.90. The consecutive gains from the Nov. 28 low of $80.61 confirmed a reversal of the downtrend from $99.56. Five waves make up the trend.
The peak of the wave (d) at $89.90 works as a target.
A retracement analysis on the trend reveals a similar target of $90.09.
Strategically, these targets will be confirmed when oil breaks $87.71.
A correction from the current level may be limited to $85.26. On the daily chart, with oil having stood firm above $83.63, the preceding break below this level has been confirmed false.
Brent oil to retest support at $80.88
The contract may rise towards a range of $89.28-$93.44 over the next one or two weeks.
The rise is tentatively considered as either a bounce against the fall from the Nov. 7 high of $99.56 or the third leg of an irregular flat from $83.65.
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