Markets

US oil may test resistance at $70.15

  • The contract is riding on a wave c from $67.13, which may extend to $72.01 or $75.03. After being disrupted by a deep correction, this wave has resumed
Published September 9, 2021

SINGAPORE: US oil may test a resistance at $70.15 per barrel, a break above which could lead to a gain to $71.08.

The contract is riding on a wave c from $67.13, which may extend to $72.01 or $75.03. After being disrupted by a deep correction, this wave has resumed.

The resistance at $70.15 is strengthened by a similar one established by a falling trendline. As a result, the break above $70.15 will be considered as a major victory of bulls.

It suggests a reversal of the downtrend from the July 6 high of $76.98.

Support is at $68.99, a break below which could cause a fall into the $67.68-$68.28 range. On the daily chart, oil pierced above a resistance at $69.44. It is likely to overcome this barrier and rise towards $72.32.

Key support is at $67.12, a break below which could open the way towards the $61.91-$64.79 range.

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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