US oil to test support at $100.90
USO•The US oil contract is expected to test support at $100.90 per barrel; a break below could lead to $98.47-$99.97. Resistance is at $102.41, with a break above potentially opening a move to $103.34-$103.92.
1. Oil price levels
The US oil contract is expected to test support at $100.90 per barrel. A break below could trigger a fall into the $98.47-$99.97 range, while resistance is at $102.41 and a move above it may lead to $103.34-$103.92.
2. Technical outlook
The contract is presumed to be riding a wave C from $110.48, which could reach the bottom of wave A around $96. A bounce from support at $96.68 appears to have ended near resistance at $104.01, and the market is expected to retrace toward that support. The October 20 shooting star continues to overshadow the daily chart.
