US oil may retest support at $63.90
- It could be too early to conclude that the uptrend has reversed, simply based on the consolidation.
SINGAPORE: US oil may retest a support at $63.90 per barrel, a break below could cause a fall to $63.13.
The contract is riding on a wave c from $66.40. This wave looks incomplete, as it is too short, compared with the preceding wave a.
In terms of both length and duration, the wave c may extend more towards $63.13 - the ending point of the wave a.
A retracement analysis reveals a resistance at $65.15, a break above could lead to a gain into $65.63-$66.40 range.
On the daily chart, oil is expected to consolidate further below a resistance zone of $65.65-$66.60.
It could be too early to conclude that the uptrend has reversed, simply based on the consolidation.
The trend is driven by a wave C, which is supposed to travel to $71.93. This wave may resume upon the completion of the consolidation.
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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