SINGAPORE: US oil looks exhausted while approaching a resistance zone of $104.50-$104.99 per barrel, and may start a deep correction soon.
The zone has been formed by the April 16 high of $104.99 and a resistance established by the upper trendline of a wedge.
The bearish divergence on the hourly RSI strongly suggests a slim chance of a break above the zone.
Most likely, oil will peak near this resistance zone and start a downtrend towards $100, a support provided by the lower trendline of the wedge. A drop to $103.50 could signal the reversal of the uptrend.
A valid break above the zone will be confirmed when oil stands firm above $105.
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.
Comments
Comments are closed for this article.