U.S. oil NYMEX:CL1! may fall toward $66.35 per barrel, as suggested by a projection analysis.
The market has broken a key support at $69.13, the 361.8% projection level of a downtrend from $95.44. This projection analysis reveals a target around $63.58.
Wave theory suggests a similar target, assuming that the current wave V would be roughly equal to the wave I from $96.98. Immediate resistance is at $68.07, a break above which may lead to a gain into the $69.13-$69.99 range.
On the daily chart, the market has broken a support at $70.52. The break opened the way toward $64.07, close to $63.58 (hourly chart).
A projection analysis on the downward wave C from $109.54 marks a lower target at $57.98, the 138.2% level.
* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are exclusively published on the Workspace platform - a London Stock Exchange product.
** 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.