US oil may retest resistance at $47.71
- A rising channel indicates an extension of this trend towards $49.31, its 214.6% projection level. The resistance at $47.70 (close to $47.71) temporarily stopped the trend.
SINGAPORE: US oil may retest a resistance at $47.71 per barrel, a break above which could lead to a gain to $48.36.
The resistance is identified as the 100% projection level of a wave 3 from $44.95. This wave is expected to travel into a range of $48.76-$49.42.
Following its first failure to break $47.71, the contract may succeed in overcoming this barrier and rising towards $48.36, as this wave 3 has a fierce character.
Support is at $46.66, a break below which could cause a fall into $46.00-$46.33 range. On the daily chart, the surge on Thursday confirmed an uptrend from $37.06.
A rising channel indicates an extension of this trend towards $49.31, its 214.6% projection level. The resistance at $47.70 (close to $47.71) temporarily stopped the trend.
As long as oil remains above $46.30, the target of $49.31 will be intact.
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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