US oil may retest support at $57.88
- Given that the support at $57.88 held firm on March 23 under a strong attack by bears, it may hold again and trigger a bounce this time.
SINGAPORE: US oil may retest a support at $57.88 per barrel, a break below which could cause a fall to $55.50.
The contract has fallen below a higher support at $59.81, the 50% retracement. It is expected to drop further to $57.88.
The current correction is regarded as similar to the one from the Aug. 26, 2020 high of $43.78.
Oil may take a few months to complete the correction and then retest a resistance zone of $65.65-$66.60.
Given that the support at $57.88 held firm on March 23 under a strong attack by bears, it may hold again and trigger a bounce this time.
For the next one or two weeks, oil may be range-bound between $57.88 and $61.74.
On the hourly chart, the contract is expected to retest a support at $58.82, with a good chance of breaking below this level and falling towards $57.25.
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.
Comments
Comments are closed.