SINGAPORE: US oil may bounce towards $104.50, as it has stabilised around a support zone of $94.80-$96.47 per barrel.
The zone is formed by the 86.4% retracement of the rise from $89.18 to $130.50 and the 50% retracement of the uptrend from $62.43.
A narrow falling channel suggests a lower target around $101. Most likely, the bounce would end in the range of $101-$104.50.
A drop to $93.40 could confirm the continuation of the downtrend towards $89.18. On the daily chart, a retracement analysis on the fall from the 2008 high of $147.27 reveals a support at $94.86, which is working together with $94.80 (hourly chart).
Even though it is clear that the support has triggered a bounce, it is not very certain how far this bounce could go.
The target of $114.89 looks too aggressive. Conservatively, $102.07 works as a realistic target.
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.