SINGAPORE: US oil may break a resistance at $117.89 per barrel and rise into a range of $119.30-$120.97, following the completion of a correction from $123.68.
Three waves make up the correction.
The wave b peaked at $119.56, which serves as a target.
The strong rise from the Thursday low of $112.31 indicates a continuation of the uptrend.
However, the continuation will only be confirmed when oil breaks $119.56.
US oil to test support at $114.41
Immediate support is at $116.59, a break below which may be followed by a shallow drop to $115.20.
On the daily chart, the long-shadowed hammer on Thursday is regarded as a convincing reversal signal.
With the readings on the hourly chart having turned bullish, a white candlestick may form on Friday.
The hammer and the white candle will be a reliable combination, suggesting a further rise into $121.63-$125.39 range.
Until now, the uptrend remains steady within a rising channel.
It will be violated if oil breaks $111.72.
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