SINGAPORE: US oil may fall into a range of $83.70 to $84.48 per barrel, as it may have completed a bounce triggered by the support at $81.47.
The support is identified as the 76.4% projection level of a downward wave (c) from $90.39.
This wave is expected to travel to $78.71.
Strong as it was, the bounce in last week is still classified as a part of the wave (c).
Even if the bounce expectedly extends at a later stage, oil may pull back towards a falling trendline first.
US oil may retest support at 81.20
A break above $86.51 may lead to a gain into $86.98-$87.76 range.
On the daily chart, oil has been pulling back towards a former support at $86.11 after breaking below this level.
Wave pattern suggests an incomplete wave (C) from $104.46, which may travel into $62.89-$71.76 range.
Another projection analysis on a different wave C marks a target of $73.93.
The downtrend is expected to resume very soon to extend towards these targets.
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