SINGAPORE: US oil may test a support at $58.80 per barrel, a break below which could open the way towards $57.83.

The bounce from the April 5 low of $57.63 may have been driven by a wave B, the second wave of a three-wave cycle from the March 30 high of $62.27.

This wave is expected to be totally reversed by a wave C, which has started and is observing closely a set of projection levels on a small wave c from $61.75.

Resistance is at $60.04, a break above which could lead to a gain into $60.44-$60.94 range.

On the daily chart, the support at $57.88 holds again. However, it may not trigger a strong bounce same as it did on March 24. Instead, the current bounce may be limited to $59.81.

A break below $57.88 could open the way towards $51.64-$55.50 range.

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