SINGAPORE: US oil is expected to test a support at $79.78 per barrel, a break below which will lead to a further loss to $78.
The support was formed around the Oct. 16 low, temporarily holding oil from falling towards $78, another support provided by the lower channel line of a falling channel.
Even though it is hard to categorise the fall from the Oct. 21 high of $84.05, a preceding downtrend from the Sept. 30 high of $94.90 does seem to have resumed.
Resistance is at $82.61, the 23.6 percent Fibonacci retracement on the fall from the Oct. 3 high of $91.79 to
$79.78, a break above which will lead to a further gain to $84.37, the 38.2 percent level.
** 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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