SINGAPORE: Brent oil still targets $83.76-$84.53 range, as it is topping around a resistance at $86.74 per barrel.

The resistance is identified as the Oct. 3, 2018 high.

It is strengthened by another one at $87, the 261.8% projection level of an uptrend from $73.26.

The bearish divergence on the hourly RSI reveals a dissipation of bullish momentum. Oil has a slim chance of breaking above these resistances and rising further.

The pattern from the Oct. 18 high of $86.04 looks like an expanding wedge, which often appears at the end of an uptrend.

A break above $87 could lead to a gain into $87.77-$89.01 range.

The bearish divergence also appeared on the daily RSI. After the steep rise from the Sept. 10 low of $70.94, oil is prone to a decent correction.

Market appeared unusually calm on Tuesday. The low volatility generally is regarded as a typical signal of a sentiment reversal.

oil is struggling around a resistance zone of $85.17-$86.74.

A former target range of $89.63-$92.69 has to be temporarily aborted, due to a bearish divergence on the daily RSI and a dissipation of the bullish momentum.

It is increasingly possible that a decent correction would occur around $86.74, which has been absent on the steep rise from the Sept. 10 low of $70.94.

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