SINGAPORE: US oil may test support at $103.14 per barrel, a break below which will lead to a further loss to $102.30.
The support is provided by the 23.6 percent Fibonacci retracement on the rise from the May 1 low of $98.74 to the May 27 high of $104.50. The bearish divergence on the hourly RSI and the shallow fall from $104.50 indicate a possible reversal of the uptrend and progress of a downtrend.
This downtrend may extend to $100.10, the 76.4 percent level, which is pointed by the lower trendline of a wedge. However, a rise above $104.50 could extend to $106.
The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice.
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