US oil may test resistance at $82.28
- Immediate support is at $81.12, a break below could cause a fall to $79.99
SINGAPORE: US oil may test a resistance at $82.28 per barrel, a break above which could lead to a gain to $83.69.
The surge on Tuesday confirmed an extension of the uptrend towards $82.28-$83.69 range. The bearish divergence on the hourly MACD has been violated. The violation signals a strong bullish sentiment.
But this sentiment may come close to a point where a drastic swing may occur, as the surge seems to have been driven by a wave v, the final wave of the uptrend from $62.43.
This wave, along with its preceding wave iv and wave iii, have been unfolding within a rising wedge, which generally appeared at the end of a rally.
Immediate support is at $81.12, a break below could cause a fall to $79.99.
On the daily chart, the big while candle on Tuesday suggests a further gain on Wednesday.
A close below $79.99 would cast a shadow on the bullish outlook.
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