US oil may retest resistance at $71.96
- A failure to break $71.93 may be followed by a pullback towards the triangle.
SINGAPORE: US oil may retest a resistance at $71.96 per barrel, a break above which could lead to a gain into $72.70-$73.57 range.
The contract is riding on a wave (5), which is expected to be roughly equal to the wave (1), to travel to about $73.57. It is strange that a correction was triggered by the 107% projection level of $71.96, instead of the expected 100% level of $71.28.
The shallow correction on Monday is classified as a pullback towards $71.28. Support is at $70.60, a break below which may open the way towards the range of $68.99-$69.96.
On the daily chart, the resistance at $71.93 accounted for the correction as well. However, the uptrend remains steady, which is extending towards $75, as indicated by a bullish triangle.
Wave pattern suggests the progress of a big wave C from $51.64, which may extend into a higher target zone of $79.68 to $84.47.
A failure to break $71.93 may be followed by a pullback towards the triangle.
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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