The range has been formed by the Oct. 23 low and the Oct. 17 high. The sideways move within this range could be followed by a strong surge or a continuation of the previous downtrend.
Based on the price difference of $3.22 between $87.34 and $84.12, oil may rise further to $90.51 should it be able to climb above the range. Likewise, a bearish target at $80.92 will be established if it dips below $84.12.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. 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.