US oil may test resistance at $60.94

SINGAPORE: US oil may test a resistance at $60.94 per barrel, a break above which could lead to a gain to $61.75.

The contract has climbed above a resistance at $60.44. It is expected to inch up to the next resistance at $60.94.

The break above a falling trendline has not led to much optimism, as market could still be range-bound between $57 and $62.

Indeed, a wave pattern suggests downside bias despite the slow gains towards $61.75, as a powerful wave C is yet to develop. Support is at $60.04, a break below which could cause a fall towards $58.80-$59.64 range.

On the daily chart, oil seems to be bouncing towards $61.74 again, around which, the downtrend may resume.

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.