US oil may extend gains into $68.40-$68.77 range
- On the daily chart, oil has cleared a resistance at $67.14, it may rise to $71.93, the 100% projection level of an upward wave C from $51.64.
SINGAPORE: US oil may extend its gains into a range of $68.40-$68.77 per barrel, before starting a correction.
The rise is driven by a wave 3, which is heading towards the target zone formed by its 286.4% and the 300% projection levels.
This wave has not been disrupted by any decent correction yet.
Such a correction may occur in the target zone, as suggested by a rising trendline. An exhaustion gap formed on Monday, which may be covered over the next few days.
Support is at $67.07, a break below which could cause a fall into $66.02-$66.42 range.
On the daily chart, oil has cleared a resistance at $67.14, it may rise to $71.93, the 100% projection level of an upward wave C from $51.64.
However, before climbing towards this target, the contract may pull back towards a zone of $65.65-$66.60, formed by the Jan. 8, 2020 high and the April 24, 2019 high. This pullback may occure over the next one or two days.
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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