SINGAPORE: Brent oil may extend its gains to $85.68 per barrel, as it has broken a resistance at $83.04.

The strong surge on Tuesday violated a bearish divergence on the hourly MACD.

The rally, though a slow over the past few weeks, could be much stronger than expected.

Strategically, the target of $85.68 will be confirmed when oil breaks a resistance at $84.67.

A failure to overcome this barrier could signal the completion of a wave 5 and a bearish wedge.

Brent oil may fall into $79.59-$80.40 range

A target zone of $82.10-$83.04 will be established accordingly.

On the daily chart, oil failed broke a resistance at $81.57 and a falling trendline.

The break opened the way towards $85.17.

The rally may pause around $85.17, same as it did when oil touched a high of $86.50 on Oct. 26, 2021.

A break below $81.57 could indicate a continuation of the downtrend from $86.50.

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