Oil is riding on a wave 5, the fifth wave of a five-wave cycle that developed from the Sept. 17 high of $99.61. This cycle makes a part of a bigger wave C that developed from the June 19 high of $115.71.
The wave C has been disrupted by support at $82.87, the 86.4 percent projection level. The rebound from the Oct. 16 low of $82.60 has ended at the Oct. 23 high of $87.19 and the wave C seems to have resumed towards $77.70, its 100 percent projection level.
** 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.