SINGAPORE: US oil may test a support at $86.38 per barrel, a break below which could cause a fall into $83.69-$85.29 range.
A five-wave cycle from $66.04 may have completed, as suggested by the zigzagging rise within a small channel and the bearish divergence on the hourly RSI.
The wave 4 ended at $81.90, which works as a target.
A realistic target will be either $85.29 or $83.69. Resistance is at $88.62, a break above which could lead to a moderate gain into $89.45-$90.43 range.
On the daily chart, oil failed a few times to break a resistance at $89.17, around which a temporary top could have formed.
Wave pattern suggests the progress of a wave iv, which may travel into the range of $81.65-$84.52.
The uptrend may resume upon the completion of the wave iv.
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 for this article.