US oil may rise to $71.28

SINGAPORE: US oil may rise to $71.28 per barrel, driven by a powerful wave (3).

This is the third wave of a bigger wave C from $61.56. A projection analysis suggests a completion of this wave around $71.28 or an extension into the range of $74.99-$77.29.

The wave structure indicates a possible extension. Support is at $68.99, a break below which could be followed by a drop to $67.57.

On the daily chart, oil has broken a triangle which suggests a target around $75.

A projection analysis reveals a higher target zone of $79.68-$84.47.

The triangle forms a pennant together with the rise from $33.64.

This pattern suggests an aggressive target of $102, which looks too far away to be true right now.

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.