SINGAPORE: US oil may fall to $63.88 per barrel, as it has broken a support at $65.45.
The failure of the contract to break a resistance at $66.52 suggests a continuation of the correction from $67.98. Three waves make up the correction.
The wave C is unfolding.
Based on the strength of the wave B, the wave C could be much short.
A trendline suggests a target of $62.62, while the wave 2 ended around $61.35, which may be approached as well.
Chances are the wave C could end in the zone of $61.35-$62.62.
On the daily chart, a resistance zone of $65.65-$66.60 triggered the second correction, which is expected to be shallower than the one from the March 8 high of $67.98.
The uptrend from $33.64 remains unchanged.
It is not very clear how deep this correction could be. Most likely, it will end in the range of $61.79-$64.18, which keeps with the analysis on the hourly chart.
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