SINGAPORE: US oil may test a support at $97.50 per barrel, a break below could cause a fall into the range of $90.55 to $94.85. The support is identified as the 61.8% projection level of a wave C from $108.75.
This wave may either end around $97.50 or extend to $90.55.
The weak bounce on April 1 failed to extend above a resistance at $101.80.
With oil approaching $97.50 again, chances are high that this support would be broken.
A rise above $101.80 may lead to a gain into $104.45-$106.09 range.
On the daily chart, oil is poised to break the support at $98.16 and fall towards $93.79, driven by a wave C.
The pattern from $130.50 looks like a bullish triangle, which is supposed to complete when oil ends its fall around $93.79.
The views expressed are his own.
Brent oil may fall into $96.93-$99.88 range
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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