SINGAPORE: US oil may approach its Sept. 11 low of $90.43 per barrel, to complete a wave (b).
This is the second wave of a three-wave cycle that developed from $90.43. The first wave labelled (a) consists of three small waves as well, with the second wave, the wave b, having almost retraced to the starting point of the first wave, the wave a.
Such a relation between the wave b and the wave a could be similar to that between the wave (b) and the wave (a), which means the wave (b) may approach $90.43, the starting point of the wave (a).
The upward wave (c) may develop somewhere around $90.43, to travel to $94.51, the 23.6 percent Fibonacci retracement on the fall from the June 20 high of $107.73 to the Sept. 11 low of $90.43.
Resistance is at $92.96, a break above which may signal the progress of the wave (c) towards $94.51.
Wang Tao is a Reuters market analyst for commodities and energy technicals. 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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