SINGAPORE: US oil may break support at $73.98 per barrel and fall to $72.37, driven by a wave c. This wave is expected to extend into a wide range of $68.16-$72.37, in view of its strong momentum.
The support at $73.98 is strengthened by another one at $73.83.
Even though they work together, they may still fail to stop the fall, and the wave c has a fierce character. Resistance is at $74.97, a break above which could lead to a gain into $75.78-$76.58 range.
On the daily chart, oil has broken a support at $77.24.
US oil may test support at $78.14
It is expected to test the next support of $71.76, a break below which could open the way towards $62.89-$67.33 range.
The contract is riding on a wave c, which is to the same degree with the preceding wave a from $93.76. A projection analysis suggests an aggressive target of $46.29.
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