SINGAPORE: U.S. oil may retest a resistance at $57.93 per barrel, a break above which could lead to a gain to $59.51.
The resistance is identified as the 50 percent projection level of an upward wave C from $51.23. It is the third wave of a zigzag from the Dec. 24, 2018 low of $42.36.
This wave C is capable of traveling into a range of $59.51-$64.62. To put it another way, a peak could form around either $59.51 or $64.62.
Oil failed to break $57.93 in its first attempt, but may succeed in its second attempt. Support is at $56.64, a break below which could signal the dissipation of the bullish momentum, and a bearish target would be established at $54.39, which is pointed by a rising trendline.
On the daily chart, oil is yet to pull back towards the former resistance at $55.55, now a support, which is provided by the 38.2 percent retracement on the downtrend from $76.90 to $42.36. Given that oil is trying to move sideways, it is doubtful if the pullback would occur.
* The analysis is based on delayed data, prediction may be affected. 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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