- A break below $77.84 could cause a fall into $76.80-$77.34 range
SINGAPORE: US oil may break a resistance at $78.81 per barrel and rise into $79.52-$80.56 range, as its correction from the Oct. 25 high of $85.41 could have ended.
Three waves make up the correction.
The wave C is roughly 1.382 times longer than the wave A.
The strong reaction of the market around $75.12 significantly decreased the chance of the wave C extension towards $73.43.
The shallow correction triggered by the resistance at $78.81 is classified as a pullback towards a falling trendline.
A break below $77.84 could cause a fall into $76.80-$77.34 range.
On the daily chart, a morning start formed following the strong rise on Tuesday. It is a powerful bullish reversal pattern, confirming the completion of the drop from $85.41.
Over the next few days, oil may rise towards $80.75, as suggested by a falling channel.
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.