SINGAPORE: US oil may test a support at $88.36 per barrel, a break below which could cause a drop into $86.47-$87.33 range.
The fall from the Thursday high of $91.74 confirmed a continuation of the downtrend from the Feb. 4 high of $93.17.
The trend consists of three waves.
The current wave c is expected to travel below $88.36, as it could be roughly equal to the wave a. Oil broke a rising trendline again, the break confirms a reversal of the uptrend from $66.04.
Resistance is at $90.02, a break above which may lead to a gain to $91.37.
US oil may test resistance at $91.37
On the daily chart, the bounce triggered by the support at $89.17 has ended around a resistance at $91.50.
Oil is poised to retest this support.
A rising channel indicates a target of $86.30, around which, the uptrend may resume.
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.
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