SINGAPORE: US oil may test a support zone of $85.29-$85.67 per barrel, a break below which could open the way towards $83.69-$84.12 range.
The rise looks exhausted, as confirmed by the bearish divergence on the hourly MACD.
The resistance zone of $87.86-$88.36 may have triggered a deep correction which has been missing ever since the rise from the Jan. 3 low of $74.27.
Only a break above this resistance zone could the continuation of the uptrend be confirmed.
On the daily chart, the current fall is tentatively classified as a pullback towards $84.52.
A rising channel suggests an extension of the pullback towards $81.65. Wave pattern indicates the progress of a wave iv, the forth wave of a five-wave cycle from the Dec. 2, 2021 low of $62.43.
Oil's bull run rolls on despite possible China reserves release
This wave may complete around $81.65, to be reversed by the final wave, the 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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