WASHINGTON: U.S. oil may break a support at $48.51 and fall to the next support at $47.92 per barrel, as suggested by its wave pattern and a Fibonacci retracement analysis. For a chart: http://tmsnrt.rs/2f741E2 The drop on Tuesday was driven by wave d, the fourth wave of a bigger wave C from the July 10 low of $43.65. This wave is capable of extending into a range of $50.93-$52.18, formed by its 138.2 percent and the 161.8 percent Fibonacci projection levels. The current correction may be similar to the former one from the July 20 high of $47.55, which reversed about 61.8 percent of the preceding uptrend from the $43.65. Another Fibonacci retracement analysis on the uptrend from the July 24 low of $45.40 to the Aug. 1 high of $50.43 suggests a target at $47.92, around which, the fifth wave of the wave C will start and drive the price towards $50.43. A break above $49.24 could lead to a gain into the range of $49.70-$50.08. For this report in Chinese, click: * Use EIKON “Alerts” to get reports sent to your email box automatically. For guidance, click http://tmsnrt.rs/29exTKN ** 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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July 11, 2018