SINGAPORE: The current rebound of US oil is expected to end below $85.40 per barrel, as indicated by its wave pattern and a Fibonacci retracement analysis.
The rebound from the Monday low of $77.11 is labeled as a wave "B", to be followed by a wave "C" which will eventually drive the price down to $77.11 again.
It is not very certain if the wave "B" has been completed, as oil started to retrace after piercing into a range of $83.82-$85.40, the 50 percent and the 61.8 percent Fibonacci retracements on the fall from $90.52 to $77.11.
There is a chance for oil to edge up again towards $85.40 to complete the wave "B" and start a fierce wave "C" fall thereafter.
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.