US oil may test $80.17, extending loss to Friday
- Another retracement analysis on the shorter trend from $74.96 marks a realistic target of $78.94
SINGAPORE: US oil may test a support at $80.17 per barrel, a break below which could cause a fall to $78.94.
A five-wave cycle from $67.12 has completed, as confirmed by the deep fall from $85.38. The wave (4) developed from $79.98 to $74.96, which defines the target range for the next few days.
A retracement analysis on the cycle reveals a slightly higher target zone of $76.25-$78.40.
Another retracement analysis on the shorter trend from $74.96 marks a realistic target of $78.94.
Resistance is at $81.40, a break above which may lead to a gain limited to $82, a resistance established by a rising trendline.
On the daily chart, oil is likely to close low on Thursday to form another black candlestick.
It may stabilise in the support zone of $78.42-$79.71 on Friday.
The drop from the Oct. 25 high is driven by a wave iv, which may complete in this zone and be reversed by an upward wave v.
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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