SINGAPORE: US oil may retrace a bit further to $41.28 per barrel, before rising again, as suggested by its wave pattern and a Fibonacci projection analysis.
The contract is riding on a wave 3, the third wave of a five-wave cycle from the April 5 low of $35.24.
It has travelled briefly above a resistance at $42.09, the 176.4 percent level.
Chances are it may extend into a range of $43.98-$44.70, formed by the 238.2 percent and the 261.8 percent levels.
Working together with the resistance is another one at $41.90, the March 22 high. These two resistances have formed a resistance zone, forcing oil to retrace towards the 150 percent level at $41.28, around which the uptrend may resume.
A Fibonacci retracement analysis on the fall from the Oct. 9 high of $50.92 to the Feb. 11 low of $26.05 indicates a target at $45.05, the 76.4 percent retracement, near $44.70.
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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