US oil may retest support at $66.11
- A break, however, could signal the continuation of the wave C towards $71.28.
SINGAPORE: US oil may retest a support at $66.11 per barrel, a break below which could cause a drop to $65.24.
A five-wave cycle from $61.56 has completed at the May 28 high of $67.52. The wave iv ended around $65.24, which works as a target for the current correction.
A retracement analysis suggests a target zone of $64.54-$65.24.
Until oil breaks a key resistance at $67.57, the correction target of $65.24 will remain intact.
A break, however, could signal the continuation of the wave C towards $71.28.
On the daily chart, oil has more or less broken a resistance zone of $65.65 to $66.60.
It may consolidate around this zone for one or two days before surging towards $71.93.
A bullish wedge has been almost confirmed, suggesting a higher target of $75.
The contract is expected to close much higher at the end of this month.
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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