SINGAPORE: US oil may break support at $81.68 per barrel and fall further towards $77.60, driven by a powerful wave C.
Support has formed around the 76.4 percent Fibonacci projection level of the wave C, the third wave of a three-wave cycle that developed from the June 20 high of $107.73. This wave has a fierce character and may eventually extend to $77.60, its 100 percent level.
The deep fall on Oct. 14 suggests a very bearish momentum which makes support at $81.68 look vulnerable. Strategically, a fall to $81.30 may confirm a break below this support.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. 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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