Commodities

US oil may extend gains into $58.88-59.38 range

Reuters SINGAPORE | Updated on February 09, 2021 Published on February 09, 2021

US oil may extend its gains into a range of $58.88-59.38 per barrel, driven by a wave.

This is the most powerful wave of a five-wave cycle from the January 22 low of $51.44. It is capable of travelling into the target zone, which is formed by the 338.2% and the 361.8%projection levels of an uptrend from $51.64.

Due to its fierce character, this wave is unlikely to be disrupted by any decent correction, until it unfolds to $59.38.

Support is at $57.24, a break below which may cause a dip into $$57.55-57.77 range. On the daily chart, a pennant suggests a target zone of $59.90-$60.73, formed by the 400% and the414.6% projection levels of an uptrend from $37.06.

(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.

 

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Published on February 09, 2021
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