Markets

US oil may fall to $52.10

Published December 30, 2014 Updated December 30, 2014 06:10am

SINGAPORE: US oil is expected to break a support at $53.37 per barrel and fall more to $52.10, as indicated by its wave pattern and a Fibonacci projection analysis.

The support has been identified as the 114.6 percent Fibonacci projection level of a downward wave 3 which started at the Dec. 1 high of $69.54. It is the third wave of a five-wave cycle that started at the Nov. 21 high of $77.83.

The next support will be at $52.10, the 123.6 percent level, a break below which will lead to a further loss to $50.04, the 138.2 percent level.

A rise above $53.77 could be extended to $54.31.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

Copyright Reuters, 2014