SINGAPORE: US oil may test a support at $58.64 per barrel, a break below which could cause a fall into the $56.11-$57.41 range.

The current correction could be due to the completion of a five-wave cycle from $46.16. A retracement analysis suggests a target zone of $54.21-$56.11.

The wave 4 ended at $57.41, which serves as more realistic target.

Oil could have completed a pullback towards a rising trendline and is poised to retest the support at $58.46. A rise to the Feb. 19 high of $60.29 could be extended into the range of $61.13-$62.26.

On the daily chart, a rising channel suggests a further drop to $57.72.

Strategically, this target will be confirmed when oil breaks $58.55.

It is not very clear how the contract behaves around $57.72.

Most likely, it will manage to stabilize and rise towards $62.08.

Even if the whole trend from the Jan. 2 low of $33.64 has reversed, a top may still take some time to form.

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.