SINGAPORE: Brent oil may rise into a range of $109.70-$$111.65 per barrel, driven by a powerful wave 3.
The strong rise on Tuesday confirmed an extension of a wave (5), which consists of five smaller waves.
The wave 3 is the fiercest. It is capable of travelling into $111.65-$113.28 range, as suggested by a bullish triangle.
This pattern, along with the preceding rise from $90.12, makes a more bullish pennant, indicating a higher target of $120.
A drop from the current level will be regarded as a pullback towards the triangle. The pullback may be limited to $104.22-$105.37 range.
On the daily chart, oil seems to be riding on an extended wave (5), which is capable of travelling to $128.40, as it has developed far above a resistance at $101.87.
A realistic target could be $113.11 or $115.72.
The whole downtrend from $128.40 has been so deeply reversed that it is only a matter of time when this high is revisited.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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