US oil may test resistance at $65.92
- Following its failure to break the resistance zone, oil is likely to succeed in its current attempt.
SINGAPORE: US oil may test a resistance at $65.92 per barrel, a break above which could lead to a gain to $66.70.
The contract has stabilized around a support at $64.64, the 38.2% retracement of a five-wave cycle from $59.24. The stabilization indicates the completion of the correction from $67.98, or the first part of this correction.
The correction will be totally or partially reversed.
A break below $64.64 could cause a fall into the range of $62.58-$63.61.
On the daily chart, the drop on Monday was largely due to a resistance zone of $65.65-$66.60, formed by the Jan. 8, 2020 high and the April 24, 2019 high.
Wave pattern suggests the progress of a wave C from $51.64, which is capable of traveling to $71.93.
Following its failure to break the resistance zone, oil is likely to succeed in its current attempt.
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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