US oil may rise to $85.49, hanging man ominous
- The trend could be riding on a powerful wave 3, which has a fierce character and shows no sign of a completion yet
SINGAPORE: US oil may rise to $85.49, as it has broken a resistance range of $81.79-$83.64 per barrel.
The consolidation within the range turned out to be a continuous pattern, suggesting a target of $85.49, the 176.4% projection level of an uptrend from $73.14.
The trend could be riding on a powerful wave 3, which has a fierce character and shows no sign of a completion yet.
Support is at $82.81, a break below which could cause a fall to $81.79.
On the daily chart, oil has broken a key resistance at $81.78 and completed a pullback towards this level.
The break opens the way towards $88.50-$90.57 range.
However, the candlestick pattern on Wednesday formed a hanging man, which looks bearish.
A black candlestick on Thursday will confirm this reversal pattern, while a subsequent white candlestick would reduce the risks of a drop.
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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