SINGAPORE: US oil may break a resistance at $93.20 per barrel and rebound more to $94.47, as it seems to have stabilised around a support at $91.14.
The support is provided by the 161.8 percent Fibonacci projection level of a downward wave C that started at the July 22 high of $105.25.
A small double-bottom is forming, but will only become reliable when oil breaks the resistance at $93.20, the 138.2 percent level.
The possible double-bottom, along with the bullish divergence on the hourly MACD, suggests a completion of the wave C or at least, an ongoing decent rebound.
A break below $91.14 will confirm the continuation of the wave C towards $87.81, the 200 percent 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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