SINGAPORE: US oil may retest a resistance at $88.62 per barrel, a break above which could lead to a gain into the $89.45-$90.43 range.
The contract is riding on a wave 5, which may travel to $93, assuming it is equal to the wave 1.
The resistance at $88.62 seems to be pretty strong, as it triggered two corrections.
As long as oil hovers above $86.38, the uptrend will be intact.
A break below this support could cause a fall into $83.69-$85.29 range.
On the daily chart, a fierce wave iii is unfolding towards $91.50-$93.82 range, as pointed by the upper trendline of an expanding wedge.
Top oil producers to meet amid record crude prices
It is critical that oil remains above a key support at $86.30, close to $86.38 (hourly chart), to keep its uptrend steady.
A break below $86.30 may be followed by a deep drop into $81.65-$84.52 range.
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.
Comments
Comments are closed.