SINGAPORE: US oil may retest a support at $83.03 per barrel, a break below which could cause a fall into $81.12-$82.18 range.
A five-wave cycle from $74.96 may have ended. The wave 4 completed around $81.12. Over the next few days, oil may fall towards this level.
From a longer perspective, the five-wave cycle makes the final part of a trend from the Sept. 1 low of $67.12. This trend could have reversed as well.
The bounce triggered by the support at $83.03 seems to have ended around a resistance at $84.94, a break above which may lead to a gain into $85.66-$86.64 range.
Such a break looks highly unlikely, due to the multiple bearish divergences on the hourly RSI. The divergence also appeared on the daily chart.
Two hanging men plus a shooting star strongly suggest the exhaustion of the uptrend.
The 200% projection level of $85.14 may serve as a limit to any further gain.
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.