SINGAPORE: US oil is biased to break a support at $30.92 per barrel and fall towards the next support at $30.13, as it failed again to break a resistance at $31.71.
The two supports and the resistance are identified respectively as the 300 percent, the 338.2 percent and the 261.8 percent Fibonacci projection levels of a downward wave 3, the third wave of a five-wave cycle from the Oct. 9 high of $50.92.
Oil's failure to overcome the barrier at $31.71 suggests the consolidation from the Jan. 12 low of $29.93 could have adopted a flat pattern, which is basically confined within a range.
A break above $31.71 could lead to a gain to $32.19, the 238.2 percent level.
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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