SINGAPORE: US oil may test a support at $85.93 per barrel, a break below which could open the way towards $84.55.
A five-wave cycle from the Sept. 8 low of $81.20 has completed.
The contract is falling towards the bottom of the wave d at $85.16.
Even though five waves make up the cycle, they are mainly corrective waves, which suggest a return of the price to $85.16.
Resistance is at $87.63, a break above which could lead to a gain into $88.68-$89.57 range.
On the daily chart, wave pattern suggests an incomplete wave (C) from $104.46, which may travel into $62.89-$71.76 range.
US oil may fall into $83.70-$84.48 range
Another projection analysis on a different wave C marks a target of $73.93.
After three days’ consecutive bounce, oil seems to have lost its momentum around a resistance at $89.20.
The bounce is interpreted as a temporary retreat of bears before they launch a more destructive offensive.
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