- A retracement analysis reveals that oil has pierced below a support at $63.53. Chances are it may drop to $62.33.
SINGAPORE: US oil may fall to $62.33 per barrel, as a five-wave cycle from March low of $57.25 has completed.
The completion has been confirmed by its five-wave structure and the deep drop from $65.47.
A retracement analysis reveals that oil has pierced below a support at $63.53. Chances are it may drop to $62.33.
These five waves make up a bigger wave B, which only reversed 76.4% of the wave A.
The downward wave C may have started, unfolding towards a wide range of $57.25-$60.39.
Resistance is at $64.27, a break above which could lead to a gain to $64.89-$65.47 range. On the daily chart, oil failed to break a strong resistance zone of $65.65-$66.60.
It could have started a correction which is expected to be shallower than the previous one in February.
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