SINGAPORE: US oil may bounce to $73.34, as it has found a support at $71.09 per barrel.
The deep fall on Tuesday suggests a reversal on the uptrend from $61.56. The ultimate depth of the fall is yet to be determined.
The fall could be broken down into three small waves.
The relation between the wave a and the wave c confirms the completion of the fall, or the first round of the fall.
US oil may test support at $72.70
A break below $70.82 could signal the extension of the drop towards $69.27.
On the daily chart, a projection analysis on the uptrend from $61.56 reveals a support at $71.32, around which the wave 4 is temporarily over.
This wave is expected to be sideways, as the preceding wave 2 is sharp.
The wave 4 may develop in the range of $71.32 to $75.05 for a few days.
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.
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