By
SINGAPORE: US oil may test a support at $94.85 per barrel, a break below could open the way towards $90.55.
The contract has fallen below a triangle, which was confirmed as bearish continuation pattern, suggesting a target of $90.55, the 100% projection level of a wave (c) from $108.75.
Oil is pulling back towards this pattern. The pullback may end below $99.65.
A further gain could make this triangle and the target of $90.55 invalid.
On the daily chart, the consolidation is confined within a bigger triangle, which suggests a fall towards $93.79.
The nature of this pattern remains unknown.
It could turn out to be a bullish continuation pattern or a top pattern. In either case, oil is likely to start a bounce around $93.79.
More Stories
Comments
Comments are closed for this article.