US Oil may Test Resistance at $86.76

US oil may test a resistance at $86.76 per barrel, a break above could open the way towards $87.66-$88.07 range.
The roller-coaster move of the price on Monday suggests the development of a wave C, the third wave of a three-wave cycle from $81.20.
This wave could either end around $87.66, if it is weak, or extend to $91.09, if it proves strong.
Before testing $86.76, oil may retrace moderately to $84.63, as indicated by the symmetrical nature of the chart.
A break below $84.63 could open the way towards $83.32. On the daily chart, oil failed to break a support at $81.14 again.
The hammer on Monday indicates a further bounce towards $89.20.
However, the current bounce is expected to be much weaker than the one from the Sept. 8 low of $81.20, probably to end below $89.20.
Both of these bounces are a part of a downtrend from $104.46, which is riding on a wave C that could travel to $73.93.

About Parvin Faghfouri Azar

Check Also

Shell, others to Sustain Oil Production to Meet Rising Energy Demand

BP and Shell, among others have scaled back promises to cut back oil and gas …

Leave a Reply

Your email address will not be published. Required fields are marked *