SINGAPORE: US oil may bounce into a range of $102.15-$104.33 per barrel, before resuming its downtrend.
The bounce was due to a trendline support around $98.
A retracement analysis on the uptrend from $92.93 to $111.37 reveals that more than 61.8% of the trend has been reversed.
Chances are the $92.93 low may be revisited. Key resistance is at $104.33, a break above which may signal the extension of the uptrend towards $111.37.
On the daily chart, the current fall observes closely a set of projection levels on the downtrend from $116.64.
US oil may test support at $99.97
The 50% projection level of $98.16 provides a support which is roughly identical to the one established by the rising trendline.
The current bounce may end around $102.52, as a break above this level may open the way towards $107.92.
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