SINGAPORE: US oil may revisit its Dec. 17 high of $58.98 per barrel, as it has managed to stabilize around a support at $53.69.
The support has been identified as the 238.2 percent Fibonacci projection level of a downward wave C that developed from the Sept. 30 high of $94.90. The rebound triggered by this support has easily extended above two resistances, namely $56.22 and $57.77, respectively the 223.6 percent and the 214.6 percent projection levels. Chances are it may eventually reach $60.30, the 200 percent level.
The downtrend shall remain steady and may resume once the rebound ends around $60.30, as the wave C is capable of traveling to $49.61, the 261.8 percent projection level.
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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