SINGAPORE: US oil may break a support at $50.04 per barrel and fall further towards the next support at $48.38, as indicated by its wave pattern and a Fibonacci projection analysis.
These two supports are identified respectively as the 138.2 percent and the 150 percent Fibonacci projection levels of downtrend that developed from the Dec. 1, 2014 high of $69.54.
The trend is a part of a bigger trend falling from the Nov. 21 high of $77.83. Five small waves make up the trend, with the current wave 5 expected to eventually travel a similar distance as the wave 1, to roughly arrive at $44.65, the 176.4 percent projection level.
Oil has briefly pierced below $50.04.
However, only a drop below the Jan. 5 low of $49.68 could confirm a break below this support. Rebound may be capped at $50.76.
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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