SINGAPORE: A bearish target at $103.24 per barrel remains unchanged for US oil, as indicated by a Fibonacci retracement analysis.
The depth and the duration of the fall from $107.73 indicate this fall is against the longer uptrend from the May 1 low of $98.74, instead of the short one from the June 5 low of $101.60.
A Fibonacci retracement analysis on the long trend reveals oil has broken below a support at $104.30, the 38.2 percent level. The next support will be at $103.24, the 50 percent retracement.
The support at $104.30 has become a resistance, a break above which will signal the formation of a bottom around $103.80, and a rebound target at $105.20 will be established.
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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