US oil may retest resistance at $47.71
- A rising channel indicates an extension of this trend towards $49.31, its 214.6% projection level. The resistance at $47.70 (close to $47.71) temporarily stopped the trend.
SINGAPORE: US oil may retest a resistance at $47.71 per barrel, a break above which could lead to a gain to $48.36.
The resistance is identified as the 100% projection level of a wave 3 from $44.95. This wave is expected to travel into a range of $48.76-$49.42.
Following its first failure to break $47.71, the contract may succeed in overcoming this barrier and rising towards $48.36, as this wave 3 has a fierce character.
Support is at $46.66, a break below which could cause a fall into $46.00-$46.33 range. On the daily chart, the surge on Thursday confirmed an uptrend from $37.06.
A rising channel indicates an extension of this trend towards $49.31, its 214.6% projection level. The resistance at $47.70 (close to $47.71) temporarily stopped the trend.
As long as oil remains above $46.30, the target of $49.31 will be intact.
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