SINGAPORE: Brent oil may climb into a range of $86.64-$87.37 per barrel, as it has cleared a resistance at $85.14.
The resistance is identified as the 161.8% projection level of a bigger wave C from $70.43.
It was strengthened by another one at $85.04, the 100% projection level of an upward wave (c) from $77.55.
The break above these resistances is a major advance. It opens the way towards $86.46-$87.37 range.
A break below $85.04, now a support, may cause a fall into $83.27-$84.02 range.
On the daily chart, the uptrend remains steady within a channel, which suggests a target range of $89.63-$92.69. However, it is doubtful that oil could fulfil this target without a correction first.
Such a correction has been missing on the steep rise from the Aug. 23 low of $64.60. It may be triggered by the resistance at $86.74.
Even if the resistance fails to cause a correction, market is expected to be much more volatile around this level.
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