US oil to drop to $44.65

SINGAPORE: US oil is expected to drop to $44.65 per barrel, as it has broken a support at $46.71.

The support was at the 161.8 percent Fibonacci projection level of downtrend that developed from the Dec. 1, 2014 high of $69.54.

The next support will be at $44.65, the 176.4 percent level, a break below which will lead to a further loss to $43.24, the 186.4 percent level.

A sudden surge above $46.71, now a resistance, may be extended to $48.38, the 150 percent level.

It seems that oil is still riding on a steady downtrend, which may eventually extend to $36.74 by end of March.

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