SINGAPORE: US oil may revisit its Feb. 14 high of $95.82 per barrel, as an uptrend from $66.04 may have resumed.
The resumption was confirmed by a surge on Monday, which helped oil escape from a short falling channel.
The pattern from $81.90 looks like a bullish flag, which suggests a target of $102.
A projection analysis on the uptrend from $74.27 reveals a realistic target zone of $97.70-$98.73.
US oil biased to fall towards $87.22
Support is at $92.53, a break below which could open the way towards $90.50.
On the daily chart, a shallow wave iv may have completed around a support at $89.17. Oil is riding on a wave v which could travel into $96.69-$98.66 range.
Given that the wave iii had much extended, this wave v may be as long as the wave i, to complete around $100, which is also regarded as a psychological barrier.
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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