SINGAPORE: Brent oil may retest a support at $60.55 per barrel, a break below which could cause a loss into a range of $59.13-$59.92.
The support is provided by the 150 percent projection level of an uptrend from $52.51. The fall from the Feb. 4 high of $63.63 looks incomplete, as it followed a completion of a five-wave cycle from the Dec. 26, 2018 low of $49.93.
A retracement analysis on the cycle suggests a target zone of $56.78-$58.40, formed by the 50 percent and the 38.2 percent levels.
On the daily chart, another retracement analysis on the uptrend from $27.10 to $86.74 reveals a target at $56.92, which falls within the range of $56.78-$58.40. A further gain from the current level may be limited to $63.96, the 38.2 percent level.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. 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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