US oil may rise into $69.96-$71.28 range
- A break below $68.99, now a support, may cause a fall limited to $67.57.
SINGAPORE: US oil may rise into a range of $69.96-$71.28 per barrel, as it has broken a resistance at $68.99.
The contract is riding on a wave C from $61.56, which is capable of travelling to $71.28. The structure of this wave suggests a more aggressive target zone of $74.99-$77.29.
A total of five small waves will make up the wave C. The third wave, labelled (3), is the fiercest. It could easily travel to $71.28.
A break below $68.99, now a support, may cause a fall limited to $67.57.
On the daily chart, oil has broken a triangle which suggests a target around $75.
This pattern forms a more bullish pennant, together with the rise from $33.64. The pennant indicates a higher target of $91, which may be fulfilled by end of this year.
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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