SINGAPORE: Brent oil may test a resistance at $92.58 per barrel, a break below could open the way towards $93.39-$94.20 range.
Oil stabilized around a support at $89.94, which is strengthened by a similar one established by a rising channel.
The stabilization indicates the completion of the first round of the drop from the Feb. 7 high of $94.
Three waves make up the drop.
Oil prices steady as investors eye US-Iran nuclear talks
The current wave b is unfolding. I
t is quite challenging to predict the ending point of this wave, which could extend to any level below $94.20.
The best bet is this wave b may end around $92.58.
A break below $90.95 may signal the continuation of the downtrend.
On the daily chart, the bounce on Wednesday was due to a support at $89.63.
A rising channel and the bearish divergence on the daily RSI suggest a further fall towards $85.17.
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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