U.S. oil may retest support at $80.70
XLE•U.S. oil technical outlook
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SINGAPORE, Aug. 17 (Reuters) - U.S. oil CLc1 may retest a support at $80.70 per barrel, following its failure to break resistance at $83.99.
Identified as the 50% retracement of the downtrend from $93.73, the resistance is considered as strong as the one at $86.29, the 61.8% level.
Three waves may make up the consolidation below $83.99. The current wave is expected to end around either $83.16 or $83.99, to be reversed by the downward wave c.
A break above $83.99 could lead to a gain to $86.29. On the daily chart, another retracement analysis on the rise from $67.23 reveals a narrow neutral range of $80.50 to $83.63.
The market may consolidate within the range for one or two days before either resuming its rally or falling toward $77.37.
- Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are exclusively published on the Workspace platform - London Stock Exchange product.
** 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.
