SINGAPORE: US oil is expected to revisit its Oct. 27 low of $79.44 per barrel, as it has completed a rebound from this level.
The rebound has been driven by a wave (4), which peaked around $82.63, the 23.6 percent Fibonacci retracement on the fall from the Oct. 1 high of $92.96 to $79.44. A downward wave (5) has travelled below a support at $81.41, the 14.6 percent level, and is progressing towards $79.44.
A rise above $81.41, now a resistance, could signal the extension of the wave (4) towards $82.63.
** 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.
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