SINGAPORE: US oil may break a resistance at $63.76 per barrel and rise more towards the next resistance at $64.66, as it could have completed a drop from the March 26 high of $66.55.
These resistances are identified respectively as the 61.8 percent and the 76.4 percent projection levels of an upward wave C from $59.95.
Oil managed to stabilize around a support at $62.31, which is strengthened by a similar one established by a rising trendline. The stabilization suggests a reversal of the downtrend.
It is not very clear if oil could break $63.76 at its first attempt. A shallow drop to $63.04 before the contract retests the barrier could be perfect as the drop could prepare oil for a strong bullish momentum.
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.
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