US oil may rise to March 8 high of $67.98
- Support is at $65.88, a break below which could cause a fall into $64.75-$65.45 range.
SINGAPORE: US oil may rise to March 8 high of $67.98 per barrel, as suggested by a retracement analysis.
The analysis reveals that almost 86.4% of the fall from $67.98 has been reversed.
The current rise does not look like a part of the three-wave correction from this level. Instead, it could be a resumption of the preceding medium-term uptrend.
Based on the assumption that the current wave c would be equal to the wave a from $60.66, oil may rise to $67.72, close to $67.98.
Support is at $65.88, a break below which could cause a fall into $64.75-$65.45 range. On the daily chart, oil is retesting a strong resistance zone of $65.65-$66.60.
It would be a bit surprising that the contract breaks this zone without a shallow correction. However, market is always full of surprises.
Such a correction may develop on Wednesday, if it occurs.
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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