Friday, 13 November 2015 13:17
SINGAPORE: US oil may slide more to $ 40.86 per barrel, as it has broken a support at $ 42.78.
The support was provided by the 61.8 percent Fibonacci retracement on the uptrend from the Aug. 24 low of $ 37.75 to the Oct. 9 high of $ 50.92. The next support will be at $ 40.86, the 76.4 percent level.
Wave pattern suggests oil will be riding on a wave c, the third wave of a presumed three-wave cycle from the Oct. 9 high of $ 50.92. A Fibonacci projection analysis indicates a target at $ 40.02, the 100 percent level, which will be confirmed when oil breaks $ 40.86.
A bounce from the current level may be limited to $ 41.99, the 76.4 percent projection level.
