SINGAPORE: US oil may test a support at $62.80 per barrel, a break below which could cause a loss to $61.46. The contract failed again to break a resistance at $64.62, the 100 percent projection level of an upward wave C from $51.23. Apparently, a peak is developing around this resistance.
A break above $64.62, however, could confirm the progress of the wave c towards $65.56. This resistance at $64.62 is not working alone, it is strengthened by another one at $64.90 on the daily chart, the 23.6 percent retracement on the uptrend from $26.05 to $76.90.
Either the uptrend from the Dec. 24, 2018 low of $42.36 is peaking, or the correction triggered by the resistance at $64.90 is extending. In either case, oil is expected to slide more.
The correction may consist of three waves. The third wave labelled c is unfolding. It will be too aggressive to target $57.48, a realistic target could be the April 15 low of $63.03.
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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