SINGAPORE: US oil may seek a support at $104.87 per barrel and stabilize around this level thereafter.
The support is strengthened by a similar one of $104.50. Together, these supports could temporarily stop the fall and trigger a bounce.
The depth of the fall from $130.50 strongly suggests a completion of a five-wave cycle from $62.43.
The bulls’ party could be over.
In the next few trading sessions, oil is expected to consolidate in the range of $104.87-$114.66 before dropping again.
On the daily chart, oil broke a support at $114.89 after failing to break a resistance at $128.61.
It is highly likely to fall towards the next support at $94.86, near the bottom of a wave iv.
Wave pattern suggests the completion of a five-wave cycle from $10.07, the presumed starting point of this cycle.
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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