Markets

US oil may fall to $64.71

  • It may experience the last correction before overcoming this strong barrier and rising towards $71.93.
Published May 27, 2021

SINGAPORE: US oil may fall to $64.71 per barrel, as it failed to break a resistance at $66.33.

The rise from the May 21 low of $61.56 looks too sharp to sustain.

The failure to break $66.33 works as a good excuse to bulls to retreat towards $64.71.

A break above $66.33 could lead to a gain to $67.01-$67.98 range, while a break below $64.71 could cause a fall to $63.28.

On the daily chart, oil seems to be unable to break a resistance zone of $65.65 to $66.60.

It may experience the last correction before overcoming this strong barrier and rising towards $71.93.

The contract has been very persistent in testing this zone.

Its persistence simply suggests a steady uptrend which may extend more when the current wedge completes.

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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