SINGAPORE: US oil may test a resistance at $60.94 per barrel, a break above which could lead to a gain to $61.75.
The contract has climbed above a resistance at $60.44. It is expected to inch up to the next resistance at $60.94.
The break above a falling trendline has not led to much optimism, as market could still be range-bound between $57 and $62.
Indeed, a wave pattern suggests downside bias despite the slow gains towards $61.75, as a powerful wave C is yet to develop. Support is at $60.04, a break below which could cause a fall towards $58.80-$59.64 range.
On the daily chart, oil seems to be bouncing towards $61.74 again, around which, the downtrend may resume.
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