SINGAPORE: US oil may retest a support at $94.71 per barrel, a break below which could trigger a drop to $91.90.
The contract is riding on a fierce wave 3, which has briefly travelled below its 161.8% projection level of $96.10.
Other than a weak bounce, this support did not cause much damage to the downtrend.
Most likely, this wave could extend into $86.61-$88.84 range. Another projection analysis on a wave C from $114.05 reveals a realistic target of $91.90.
US oil may test resistance at $112.03
A break above $98.33 may lead to a gain into $99.72-$101.96 range. On the daily chart, oil is riding on a wave (C), which is expected to extend to $86.11, as it has travelled below $100.46.
Following the deep fall on Tuesday, oil seems to be stabilizing around $94.98 on Wednesday.
Whether it could achieve something will largely depend on a close above $100.46 on Thursday.
A close below $100.46 won’t cause much stir to the prevailing bearish sentiment.
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