SINGAPORE: U.S. oil may retest a resistance at $58.59 per barrel, a break above which could lead to a gain to $59.75.
The contract is riding on a wave c or wave (3) from $54.83. Both of these waves are capable of travelling to $59.75, their 100% projection level.
The resistance at $58.59 is stronger than expected, as it caused a sharp correction. However, the correction seems to have ended around the support at $57.29. The uptrend may have resumed.
On the daily chart, the correction looks like a pullback towards a support at $57.16, the 23.6% projection level of a presumed wave C from $60.94.
As long as the contract stays above $57.16, it is likely to rise towards $60.94.
* The analysis is based on delayed data, prediction may be affected. Charts are not available in reports received in email box through “Alert”. To get charts, use the news code of to retrieve the original reports.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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. **