The bounce consists of three waves. The third wave labeled c is capable of traveling to $63.06. Strategically, this target will be confirmed when oil breaks an immediate target at $62.11, the 61.8 percent projection level of a preceding wave -c-.

However, bulls are advised not to take much fancy to this extended bounce, which may be limited to $63.06. The uptrend from $42.36 could have reversed, as suggested by the break below a rising trendline.

A break below $60.88, the 23.6 percent retracement of the uptrend from $42.36 to $66.60, could confirm the continuation of the downtrend from $66.06 towards $58.85.

On the daily chart, oil is riding on a wave C, the third wave of a big three-wave cycle from the October 3, 2018 high of $76.90. A projection analysis suggests a target at $58.45, the 23.6 percent level, which may not be fulfilled so soon, as oil is consolidating around $61.56.

* 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  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. **