SINGAPORE: A bullish target at $104.99 per barrel has been aborted for US oil as it retraced to about $103.52 after breaking above this former resistance.
Resistance was provided by the 76.4 percent Fibonacci retracement on the fall from the April 16 high of $104.99 to the May 1 low of $98.74. The retracement from the May 21 high of $104.29 indicates an exhaustion of the current uptrend which may fail to extend to $104.99.
The bearish divergence on the hourly MACD suggests a further downside. The 61.8 percent level at $102.60 will be targeted should oil fall below $103.52.
The target at $104.99 will only be resumed when oil climbs above $104.29.
The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. 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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