US oil may retest resistance at $52.84
- On the daily chart, the strong bullish momentum has pushed the price above a rising channel.
SINGAPORE: US oil may retest a resistance at $52.84 per barrel, a break above could lead to a gain into $53.41-$54.19 range.
The contract has broken a key resistance at $52.01, the 261.8% projection level of an uptrend from $37.06.
The break is a milestone in marking another victory of bulls. The next resistance is at $52.84, which caused a shallow correction.
The correction seems to be ending around $52.01, now a support.
A break below level could cause a fall to $51.34.
On the daily chart, the strong bullish momentum has pushed the price above a rising channel.
A duplicated channel indicates a new price band of $52.84-$56.37.
The escape from the lower channel suggests an acceleration of the rise.
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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