US oil may retest support at $58.80
- It is expected to break this level in its current attempt.
SINGAPORE: US oil may retest a support at $58.80 per barrel, a break below could open the way towards $57.83.
The bounce from the April 5 low of $57.63 has completed, as it has been deeply reversed.
It was driven by a wave B, the second wave of a three-wave cycle from the March 30 high of $62.27.
This wave is expected to be totally reversed by the current wave C, which is observing closely a set of projection levels on a small wave c from $61.75.
Oil has briefly pierced below $58.80.
It is expected to break this level in its current attempt.
Resistance is at $60.04, a break above could lead to a gain into $60.44-$60.94 range.
On the daily chart, oil is consolidating within a narrow range of $57.88 to $59.81.
The bounce triggered by the support at $57.88 is much weaker than the one on March 24. That signals a possible break below $57.88.
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 are closed on this story.