Markets

US oil may rise into $58.88-59.38 range

  • A realistic target could be either $58.88 or $59.38.
Published February 10, 2021

SINGAPORE: US oil may break a resistance at $58.57 per barrel and rise into a range of $58.88-59.38, driven by a wave (3)-3.

This is the third wave of a five-wave cycle from the Jan. 22 low of $51.44. It is expected to travel into the target zone, which is formed by the 338.2% and the 361.8% projection levels of an uptrend from $51.64.

The correction triggered by the resistance at $58.57 is much deeper than expected. However, it has been almost reversed.

The reversal signals a resumption of the uptrend.

Based on the depth of the correction, a bullish target of $60 has been fixed.

A realistic target could be either $58.88 or $59.38.

Support is at $58.06, a break below which could cause a fall into $57.55-$57.77 range. On the daily chart, despite the deep correction, another white candlestick formed on Tuesday. The market sentiment remains bullish.

A pennant suggests a target zone of $59.90-$60.73, formed by the 400% and the 414.6% projection levels of an uptrend from $37.06, which is more bullish than the target zone on hourly chart.

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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