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U.S. oil may retest support at $46.24

U.S. oil may retest support at $46.24

WASHINGTON:  U.S. oil may retest a support at $46.24 per barrel, as suggested by a falling channel and a Fibonacci retracement analysis. For a chart: The support is provided by the 50 percent Fibonacci retracement of the uptrend from the June 21 low of $42.05 to the Aug. 1 high of $50.43. The downtrend from this high has been developing within the falling channel, which suggests oil could slide a bit more to $45.25.

On the daily chart, oil broke a support at $47.09 again, which was provided by the 38.2 percent Fibonacci retracement of the downtrend from the Jan. 3 high of $55.24 to $42.05. For a chart: It is highly likely that the next support at $45.16 will be approached, which is very close to $45.25. Resistance is at $47.23 (first chart), a break above which may open the way towards $48.45. For this report in Chinese, click: * Use EIKON “Alerts” to get reports sent to your email box automatically. For guidance, click ** 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.