US oil may retest support at $57.88
- Given that the support at $57.88 held firm on March 23 under a strong attack by bears, it may hold again and trigger a bounce this time.
SINGAPORE: US oil may retest a support at $57.88 per barrel, a break below which could cause a fall to $55.50.
The contract has fallen below a higher support at $59.81, the 50% retracement. It is expected to drop further to $57.88.
The current correction is regarded as similar to the one from the Aug. 26, 2020 high of $43.78.
Oil may take a few months to complete the correction and then retest a resistance zone of $65.65-$66.60.
Given that the support at $57.88 held firm on March 23 under a strong attack by bears, it may hold again and trigger a bounce this time.
For the next one or two weeks, oil may be range-bound between $57.88 and $61.74.
On the hourly chart, the contract is expected to retest a support at $58.82, with a good chance of breaking below this level and falling towards $57.25.
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.
Comments
Comments are closed for this article.