SINGAPORE: Brent oil may edge up to $85.68 per barrel and then reverse its uptrend and fall into $83.04-$84.05 range.
Wave pattern suggests the progress of a wave 5, the last wave of a five-wave cycle from $69.28. This wave is expected to peak around $85.68.
This wave and the preceding several waves have been unfolding within a rising wedge, which looks like a top pattern, to be followed by a deep correction.
The uptrend from the Dec. 2, 2021 low of $65.72 has adopted a corrective wave mode, which indicates a return of price to this low in due course.
A break above $85.68 could lead to a gain to $87.05. On the daily chart, oil is retesting a resistance at $85.17.
It may fail again, same as it did on Oct. 26, 2021.
Another correction may occur, which could extend to $77.96, as pointed by a rising channel.
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