SINGAPORE: US oil may break a resistance at $80.19 per barrel, and bounce towards $81.42, as it has found a support at $78.42.
The support is provided by the 38.2% retracement of a five-wave cycle from $67.12 to $85.41. It falls within the wave (4) territory from $74.96 to $79.98.
The correction from the Oct. 25 high of $85.41 has been driven by a wave IV, which may have ended around the support. The uptrend from the Aug. 23 low of $61.74 could have resumed, driven by the wave V.
A break below $78.42 could cause a fall to $76.27. On the daily chart, the long-shadowed inverted hammer on Thursday tells how eruptive the suppressed bullish sentiment could be.
The pattern itself is a bullish reversal signal, suggesting a bounce into $80.75-$83.07 range over the next few days.
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.