SINGAPORE: US oil may seek a support at $104.87 per barrel and stabilize around this level thereafter.

The support is strengthened by a similar one of $104.50. Together, these supports could temporarily stop the fall and trigger a bounce.

The depth of the fall from $130.50 strongly suggests a completion of a five-wave cycle from $62.43.

The bulls’ party could be over.

In the next few trading sessions, oil is expected to consolidate in the range of $104.87-$114.66 before dropping again.

On the daily chart, oil broke a support at $114.89 after failing to break a resistance at $128.61.

It is highly likely to fall towards the next support at $94.86, near the bottom of a wave iv.

Wave pattern suggests the completion of a five-wave cycle from $10.07, the presumed starting point of this cycle.

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