SINGAPORE: US oil may test a support at $59.08 per barrel, a break below which could open the way towards $57.63.

A five-wave cycle from $51.44 has completed, as confirmed by the consecutive deep drops over the past two days. A retracement analysis reveals a target zone of $57.63-$59.08, formed by the 50% and the 38.2% levels.

Another retracement analysis on the shorter uptrend from $58.59 marks a set of fine-tuned levels that oil is observing. One of which is $60.58 that works as a resistance and a limit to any bounce from the current level.

Due to a small congestion area forming between Feb. 19 and Feb. 22, oil may fail to break $59.08 in its first attempt. A bounce could occur around this level.

On the daily chart, the current fall is presumed to be against the uptrend from $33.64.

The trend consists of five waves, with the wave 5 having much extended.

A retracement analysis suggests a target zone of $52.29-$56.69.

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.