The support is provided by the 100 per cent projection level of an uptrend from $50.56. It is strengthened by a similar one at $54.39, the 100 per cent projection level of a downward wave c from $56.57.
Either the correction from the Jan. 13 high of $57.42 or its first part, has completed. This correction is expected to be totally or partially reversed.
A break above $55.21 could lead to a gain into $55.58-$56.17 range. A break below $54.39 could cause a fall to $53.88. On the daily chart, market seems to be indecisive around a support at $54.50, the 261.8 per cent projection level of an uptrend from $39.34.
This support helps stop the fall as well. Oil may hover above this level for one or two days before choosing its next direction.
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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.
