SINGAPORE: US oil may break a support at $78.54 per barrel and fall to $76.63, as suggested by a retracement analysis.
The bearish divergence on the hourly MACD worked effectively while the uptrend is approaching a resistance at $79.99.
The correction triggered by the resistance may last a few days.
Most likely, the correction would extend to $76.63.
Once oil drops to this level, the uptrend from $62.43 will be considered to have reversed.
Despite the strength of rise from $62.43, its corrective-wave structure still casts a big shadow on a bullish view. The rise might have been driven by a wave B, which is expected to be reversed by a downward wave C.
A break above $79.99 could lead to a gain into $81.12-$82.41 range. On the daily chart, a small spinning top formed around $79.99 on Jan. 7.
The pattern represents a hesitation of the market. It also signals a dissipation of the bullish momentum.
A break above $79.99 could lead to a gain to $82.28 while a drop to $76.63 may cause a bearish reversal of the uptrend.
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.
Comments
Comments are closed.