SINGAPORE: US oil may retest a support at $88.72 per barrel, a break below which could open the way towards $87.20-$87.88 range.
The strong rise on Thursday is tentatively classified as a bounce against the fall from $93.64.
It could also be regarded as a pullback towards a rising trendline.
The bounce seems to have lost its momentum around a resistance at $89.60, which is pivotal in evaluating the next direction.
A break above $89.60 could lead to a gain into $90.55-$91.73 range.
On the daily chart, three black crows formed between Monday and Wednesday, which is a strong bearish reversal pattern, confirming a completion of the bounce triggered by the support at $77.24.
Oil is expected to fall towards $77.24.
US oil may drop into $82.56-$84.68 range
However, the fall was disrupted by the support at $85.59.
A bullish engulfing pattern formed between Wednesday and Thursday, suggesting a further gain on Friday or early next week.
This bullish indication is a bit conflicting with that of the hourly chart.
To compromise these readings, a likely scenario will be a shallow drop before a rise on Friday.
Comments
Comments are closed.