SINGAPORE: US oil is expected to test a resistance at $105.16 per barrel, a break above which will lead to a further gain to $106.
The sharp surge on June 9 indicates an extension of the uptrend from the May 1 low of $98.74. Driven by a powerful wave
c, this trend is capable of extending to $107.36, the 100 percent Fibonacci projection level, based on the length of the preceding wave a that developed at $98.74 and peaked at the May 27 high of $104.50.
The immediate resistance is at the 61.8 percent projection level of $105.16, which will temporarily block the way towards the 76.4 percent level of $106. Most likely, oil will start a shallow correction towards $104.30, a trendline support, when it reaches $105.16.
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.
Comments
Comments are closed for this article.