SINGAPORE: US oil may break a resistance at $66.70 per barrel, and rise to the March 8 high of $67.98.
The rise from $59.24 to $67.98 adopted an impulsive wave mode, while the fall from $67.98 adopted a corrective mode.
This structure suggests an extension of the rally above $67.98.
After a flat consolidation around $65.92, the contract has resumed its rally towards $67.98. Strategically, this target will be confirmed when oil breaks $66.70.
Key support is at $65.41, a break below which could be followed by a drop into the $63.61-$64.64 range.
On the daily chart, a wave C from $51.64 has resumed, after being disrupted by a resistance zone of $65.65-$66.60.
This wave is capable of travelling to $71.93.
Bulls may have accumulated enough momentum from the shallow correction from the March 8 high of $67.98. They are poised to break the resistance zone and push the price higher.
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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