US oil may revisit Feb. 9 low of $57.27
- Oil is expected to fall towards $57.27, which is also the bottom of the wave (3)-4.
SINGAPORE: US oil may revisit its Feb. 9 low of $57.27 per barrel, due to the completion of a five-wave cycle from $51.64.
The cycle shows a clear five-wave structure. The rise from $57.27 was driven by the weak fifth wave, which apparently ended around a resistance at $58.88.
The disordered structure of the wave 5 represents a dissipation of the bullish momentum.
Oil is expected to fall towards $57.27, which is also the bottom of the wave (3)-4.
Resistance is at $58.57, a break above which could lead to a gain into $58.88-$59.38 range. On the daily chart, oil opened low on Thursday.
The uptrend has thus been violated, unless the contract could close above $58.68, the closing price on Wednesday.
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