SINGAPORE: US oil has found a support at $91.14 per barrel and may hover above this level for one trading day or rebound to a resistance at $93.20.
The support and the resistance are provided by the 161.8 percent and the 138.2 percent Fibonacci projection levels of a downward wave C that started at the July 22 high of $105.25. Strengthening the support is another one at $91.24, the Jan. 9 low.
The bullish divergence on the hourly MACD suggests the support at $91.14 may work effectively, at least to hold the wave C for a while.
A break below $91.14 will confirm the extension of the wave C towards $89.87, the 176.4 percent projection level.
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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