US oil may stabilise around $66.96 and rise
- The current shallow correction is regarded as a pullback towards the former resistance at $66.96, now a support
SINGAPORE: US oil may stabilise around a support at $66.96 and then test a resistance at $68.35 per barrel, a break above which could lead to a gain to $69.73.
The current shallow correction is regarded as a pullback towards the former resistance at $66.96, now a support.
The rise from the Monday low of $61.74 signals a completion of a wave c from $69.62 and a corrective wave cycle from the July 6 high of $76.98.
Based on this wave analysis, oil could be rising towards the peak of a wave b at $69.62 or that of the wave (b) at $74.23.
A falling channel indicates a target of $71.45, if the rise roughly matches the one from the July 20 low of $65.21.
A break below $66.96 could confirm a pullback towards a falling trendline.
The pullback may end above $66.24.
On the daily chart, no signals of a completed rise have been sighted.
Oil has briefly climbed above a resistance at $67.12.
It may extend its gains to $69.44.
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