SINGAPORE: US oil may drop towards a wave b bottom of $65.60 per barrel, as it could have completed a bounce from the Dec. 2 low of $62.43.
The completion has been confirmed by the depth and the duration of the fall from the Dec. 9 high of $73.34. Despite its persistent attempts, oil still failed to revisit this high.
The total gain from $62.43 is expected to be reversed in due course. A realistic target zone on Monday will be from $67.20 to $68.19.
Oil prices slide as rapid Omicron spread dims fuel demand outlook
Resistance is at $69.80, a break above which could lead to a gain to $70.79. On the daily chart, a small double-top around $73.13 has been confirmed, suggesting a target around $65.59.
The bounce from $62.43 looks like a pullback towards a rising trendline. A retracement analysis on the uptrend from $33.64 reveals a target zone of $53.42-$59.53.
Comments
Comments are closed for this article.