SINGAPORE: US oil may retreat into a range of $78.57-$79.42 per barrel, as it has broken a support at $80.48.
The current fall is classified as a correction against the uptrend from $74.96.
A retracement analysis reveals a break below the support at $80.48.
The next support will be at $79.42, a break below which could cause a fall to $78.57.
A break above $80.48, now a resistance, could lead to a gain to $81.13.
On the daily chart, oil is riding on a wave C, which has travelled above a key resistance at $78.47, the 61.8% projection level.
This wave is likely to extend to $91.59.
Another projection analysis on the wave 3 from $67.56 reveals a resistance at $81.78, the 161.8% level, which caused a pullback towards $78.47.
A break above $81.78 could confirm the continuation of the uptrend towards $83.49-$86.92 range.
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