The contract has broken the falling trendline. The break
signals a reversal of the downtrend from the Sept. 16 high of
The current bounce has been well controlled by the various
projection levels of the downtrend from $69.67. The resistance
at $59.72, the 138.2% projection level, triggered a correction.
Most likely the correction will end around $58.02, a break
below which could cause a fall to $56.97.
On the daily chart, oil has found a support zone of
$56.88-$56.92, formed by the 76.4% projection level of a
downward wave c from $71.95 and the 50% retracement of the
uptrend from $27.10 to $86.74.
A rising trendline provides a support to make the zone
stronger. Chances are oil may bounce towards $63.96.