US oil may drop to $45.41
- The third wave labeled c is unfolding towards $45.41. Immediate resistance is at $46.18, a break above which may lead to a gain to $46.66.
SINGAPORE: US oil may drop to $45.41, following its failure to break a resistance at $46.66 per barrel.
The resistance is identified as the 300% projection level of an uptrend from $40.57. It caused a correction which may consist of three waves.
The third wave labeled c is unfolding towards $45.41. Immediate resistance is at $46.18, a break above which may lead to a gain to $46.66.
A projection analysis on the daily chart reveals a similar resistance at $46.30, the 161.8% level of an uptrend from $37.06.
Oil failed to overcome this barrier again. The second failure will most likely be followed by a drop towards $44.95. Only a rise above the Dec. 4 high of $46.68 could confirm a break above the resistance and the target of $47.70.
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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