US oil may revisit Feb. 26 low of $61.34
- A realistic target range could be from $60.58 to $61.20. Resistance is at $63.05, a break above which could lead to a gain to $63.44-$63.81 range.
SINGAPORE: US oil may revisit its Feb. 26 low of $61.34 per barrel, as a five-wave cycle from $51.44 may have completed.
The final part of this cycle was shaped into a rising wedge, which has been proved to be top pattern, following the drop on Feb. 26.
A retracement analysis on the cycle reveals a target zone of $57.63-$59.08. Another retracement analysis on a short uptrend from $58.59 to $63.81 marks more fine-tuned levels.
A realistic target range could be from $60.58 to $61.20. Resistance is at $63.05, a break above which could lead to a gain to $63.44-$63.81 range.
On the daily chart, an evening star formed between Feb. 24 and Feb 26. It is a convincing bearish reversal pattern. The trend from the Feb. 1 low of $51.64 has peaked.
The current fall could be towards $58.59, the Feb. 19 low.
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