US oil may retest support at $63.88
- The current correction could complete around $61.79, as suggested by a possible triangle.
SINGAPORE: US oil may retest a support at $63.88 per barrel, a break below could cause a fall to $62.62.
The unexpected strong bounce on Tuesday is classified as a part of the consolidation from the May 7 low of $63.90.
The downtrend from the May 5 high of $66.76 remains intact and may extend below $63.88, as the trend could be riding on a wave C, the third wave of a three-wave cycle from the March 8 high of $67.98.
This wave may be much shorter than the wave A, probably to end in $61.35-$62.62 range, based on the strength of the wave B. A rise above $65.75 may be extended to $66.52.
On the daily chart, oil faces a strong resistance zone of $65.65-$66.60. It is undergoing second correction, which is expected to be shallower than the one from the March 8 high of $67.98.
The current correction could complete around $61.79, as suggested by a possible triangle.
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.
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