SINGAPORE: US oil may revisit its Dec. 9 low of $70.08 per barrel, as the bounce from this level has completed.
The plunges over the past two days confirmed a completion of the bounce from $70.08. Around 76.4% of the bounce has been reversed as well.
Such a deep reversal made an extension of the bounce almost impossible.
The stabilization around $72.78 is expected to be temporary, in terms of the strong bearish momentum accumulated so far.
A break above $74.44, however, may lead to a gain to $75.79.
US oil may test support at $75.79
On the daily chart, oil is approaching a support at $71.76 again, which caused the bounce to the Jan. 3 high of $81.50.
The support looks really vulnerable, as oil may maintain its strong momentum on Thursday, to easily break this level and fall towards $62.89-$67.33 range.
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