SINGAPORE: US oil looks neutral in a range of $80.14-$81.92 per barrel, and an escape could suggest a direction.
The contract is consolidating within an ascending triangle, which looks more like a top pattern than a continuation pattern, as the uptrend from $66.82 seems too linear to sustain.
Oil is struggling around a strong resistance zone of $80.62 to $80.94.
Its sideways move represents a disorientation of the market.
The symmetrical nature of the chart suggests a downside bias.
US oil may retest support at $79.04
On the daily chart, oil is likely to cover a common gap forming between March 31 and April 3, as it failed to maintain its momentum after jumping more than 6% on April 3.
A correction may develop, which could roughly mirror the sideways move between Feb. 6 and March 13, in a range of $71.76 to $80.62.
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