US oil may rise into $58.88-59.38 range

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.

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