SINGAPORE: US oil is expected to fall to a support at $102.30 per barrel, a break below which could lead to further loss to $100.94.
The support is provided by the 23.6 percent Fibonacci retracement on the rise from the May 1 low of $98.74 to the May 27 high of $104.50. The next support will be at $102.30, the 38.2 percent level, which may temporarily stop the fall or even trigger a moderate rebound.
Based on a wedge which developed from March 3, oil could be dropping toward the lower trendline of this pattern, which is about $100.10, the 76.4 percent level. A realistic target, however, could be $100.94, the 61.8 percent level.
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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