SINGAPORE: US oil may test a support at $51.35 per barrel, a break below could cause a fall to $50.56.
Oil failed to revisit the Jan. 13 high of $53.93. The failure suggests the formation of a temporary top around this level.
A retracement analysis on the uptrend from $47.18 reveals a break below the support at $52.34.
The next support will be at $51.35.
A break above $52.34, now a resistance, could lead to a gain to $52.94-$53.46 range. On the daily chart, the bearish engulfing pattern forming between Jan. 14 and Jan. 15 suggests a further drop towards the range of $50.66-$51.34 as well.
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.
Comments
Comments are closed for this article.