SINGAPORE: US oil may test a support at $94.38 per barrel, a break below which could cause a fall to $92.72.
The market opened higher on Monday, creating a common gap which is expected to be covered soon.
The rise from the Feb. 25 low of $90.06 seems to have been driven by a wave b, which will be reversed by a downward wave c.
The wave b may have completed around a resistance at $98.73 and the wave c has started. A break below $95.52 may confirm the progress of a wave c, while a break above $98.73 may lead to a gain into $99.76-$101.42 range.
The deep drop from the Feb. 24 high of $100.54 signals a completion of a wave (5), the final wave of a five-wave cycle from $62.43.
Brent oil may test support at $99.48
As a result, the jump on Monday is not supported by the technical readings. It might be classified as a market noise.
On the daily chart, the rise is still much confined within the upper shadow of a shooting star. It could be a part of a top formation.
The high volatility itself over the past few days strongly suggests the completion of the uptrend from the Dec. 2 low of $62.43.
With the confirmed shooting star, the uptrend is highly likely to reverse.
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.