SINGAPORE: US oil may retest a support at $80.17 per barrel, as a correction from $85.38 looks incomplete.
The correction followed a five-wave cycle from $67.12, which peaked at $85.38.
It may extend into the territory of the wave (4) from $74.96 to $79.98.
A retracement analysis reveals a narrower range of $76.25-$78.40. Three small waves make up the correction.
The wave b is unfolding. It may end around $82.71 or extend a bit to $84.10.
This wave will be totally reversed by the wave c. On the daily chart, the hammer on Thursday is not regarded as a bullish reversal pattern yet, as the bearish divergence on the RSI has not be fully discounted.
Oil needs to drop further to lower this indictor, or at least to consolidate further by remaining flat.
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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