SINGAPORE: US oil is expected to fall more to $51 per barrel, driven by a wave (5).
This is the fifth wave of a five-wave cycle that started from the Dec. 22 high of $58.53.
The cycle has been developing within a falling channel, the lower channel line of which points to a target at $51.
Strategically, the target will be confirmed when oil drops below a support at $52.06, the 161.8 percent Fibonacci projection level, based on the length of the first wave, the wave (1).
Resistance is at $52.86, the 138.2 percent level, a break above which may cause a moderate gain to $53.66, the 114.6 percent level.
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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