- On the daily chart, oil may extend its gains towards $64.12, which is near the resistance of $63.38-$63.88 on the hourly chart.
SINGAPORE: US oil may end its rise in a resistance zone of $63.38-$63.88 per barrel, as suggested by its wave pattern and a ratio analysis.
The contract is riding on a wave (c) from $57.63, which is a part of a bigger wave B. The downtrend from $67.98 may resume around $63.88, the 61.8% retracement, to be driven by a wave C.
A break below $62.65 may signal the development of the wave C, while a break above $63.88 could open the way towards $65.45.
On the daily chart, oil may extend its gains towards $64.12, which is near the resistance of $63.38-$63.88 on the hourly chart.
Instead of a continuation of the uptrend, the current rise is still regarded as a part of the correction from $67.98.
Even if the uptrend has resumed, oil will have to face a resistance zone of $65.65-$66.60 which may trigger a correction again.
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