US oil may seek support at $71.96
- On the daily chart, the correction is considered as an accumulation of the bullish momentum to break a resistance at $74.89.
SINGAPORE: US oil may seek a support at $71.96 per barrel and resume its uptrend thereafter.
The drop on Monday could be due to a completion of a five-wave cycle from the June 17 low of $69.77.
This cycle is a part of a bigger wave III, which looks far from complete.
A projection analysis reveals a resistance at $74.14, the 38.2% level, which triggered the drop. Oil is expected to end its correction around $71.96, a break below which may cause a fall to $71.28.
On the daily chart, the correction is considered as an accumulation of the bullish momentum to break a resistance at $74.89.
Key support is at $71.93, which is near $71.96 (hourly chart), a break below which may open the way towards $67.14-$69.17 range, as indicated by a rising channel.
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.