While we are were busy with our trading life’s, Brent played possum from Jun
2009 till Nov 2010, around 18 months (oscillating around 70 to 80) and just
in 90 trading days is ready to retest previous highs near 140.

Why this can happen? First an 18 month sideways action can easily lead to a
6 or 9 month upside. Second, Elliott 3 waves are the strongest and generally
the longest. The ongoing wave structure suggests continued upside till 140.
Third, Previous resistances should now be supports. The psychological 100
resistances we were looking at should become supports now.

Fourth, the previous uptrend took Oil from Dec 2008 low to 80 in Feb 2010.
This was a fifty dollar upmove. A minimum target projection can take oil
from 70 (May 2010 low) to 120. And 120 puts us in all time high on Oil
reach. This is when we are expecting worrying equity to bottom and Oil to
take a pause. Brent at 140 is plausible.

Mukul Pal, CMT, Orpheus Capitals, Global Alternative Research