SINGAPORE: Brent oil may revisit its Oct. 28 low of $82.32 per barrel, as the correction from the Oct. 25 high of $86.70 has resumed.
Three waves make up the correction. They were expected to form a flat pattern until the drop on Tuesday confirmed the development of a zigzag.
There is not much difference between these two patterns, only that the wave b would be much shorter in a zigzag.
The current wave c is expected to travel below the wave to a bottom of $82.32.
Resistance is at $85, a break above which may lead to a gain into $85.77-$87 range.
On the daily chart, the bearish divergence on the RSI revived, after oil failed to break a resistance at $85.17.
The resistance zone of $85.17-$86.74 proved still strong. Oil is expected to slide into $77.96-$81.57 range.
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