SINGAPORE: US oil may break a support at $90.73 per barrel and fall towards $87.59, as suggested by a retracement analysis.
A strong wave 3 has completed. It is expected to be further reversed. The bounce triggered by the support at $90.73 has ended around a resistance at $92.67, following several failures of the contract to break this level.
With oil approaching $90.73 again, the chance of a break below this level is very high. A break above $92.67 could lead to a gain into the $94.31-$95.82 range.
Brent oil retest support at $91.57
On the daily chart, a top has formed in a strong resistance zone of $93.82-$96.69, near the upper trendline of an expanding wedge.
Oil failed to break $93.82 after a few attempts.
The failures confirmed the top.
However, wave pattern indicates a possible resumption of the uptrend when the current correction completes.
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 for this article.