Crude oil trading analysis: US crude oil may rebound to the range of $57.68-58.20
On Monday (May 5th) in the Asian market, US crude oil opened lower and fluctuated. Earlier, it fell to $55.30 per barrel, but now it has rebounded to around $56.07 per barrel. Reuters technical analysts point out that US crude oil may rebound to the range of $57.68 to $58.20 per barrel as it finds support at $55.47.
This support level has been determined as the projected level of 238.2% for the C wave that started at $63.96. The gap formed on May 4th is classified as a depletion type, as it appeared at the end of the downward trend.
The bullish divergence of the hourly chart RSI confirms the weakness of the downward trend. There may be a strong rebound to fill the gap.
If it falls below $55.47, it will confirm that the downward trend will continue, falling towards $54.63. The daily chart shows that the contract is retesting the support level of $55.64.
Considering that the support level on April 9th triggered a strong rebound, it is likely to trigger another weak rebound.
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