US oil neutral in $45.11-$45.88 range
- The range is formed by the 223.6% and the 261.8% projection levels of an uptrend from $40.57. The first round of the correction from the Dec. 4 high of $46.68 has completed.
SINGAPORE: US oil looks neutral in a range of $45.11-$45.88 per barrel, and an escape could suggest a direction.
The range is formed by the 223.6% and the 261.8% projection levels of an uptrend from $40.57. The first round of the correction from the Dec. 4 high of $46.68 has completed.
However, it is not very clear how strong the current wave b will be. It could be strong enough to travel close to $46.18 or much weaker than expected, to have ended around $45.88.
A break below $45.11 could signal the extension of the downtrend towards $44.63 while a break above $45.88 could lead to a gain to $46.18-$46.66 range.
The bias looks towards the downside on the daily chart, as oil failed to break a resistance at $46.30 again. The failure has triggered a drop towards $44.95.
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