Brent oil may gain more to $56.65
- A break above $56.65 could signal the resumption of the uptrend, while a failure could be followed by a drop towards the Jan. 18 low of $54.49.
SINGAPORE: Brent oil may gain more to $56.65 per barrel, as suggested by its wave pattern and a projection analysis.
The correction from the Jan. 13 high of $57.42 consists of three waves. The second wave labelled b ended around a resistance at $56.65, the 150% projection level on an uptrend from $50.56.
This resistance is expected to be retested. However, it is not very clear if oil could break the resistance and rise towards $57.42, as the nature of the current rise remains unclear.
The rise could be just a bounce against the fall from $57.42, or a continuation of the uptrend.
A break above $56.65 could signal the resumption of the uptrend, while a failure could be followed by a drop towards the Jan. 18 low of $54.49.
On the daily chart, oil has broken a resistance at $55.92, the 286.4% projection level of an uptrend from $39.34.
The break not only opens the way towards $57.56, but also indicates a continuation of the uptrend.
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