SINGAPORE: US oil may retrace further into a range of $75.12-$76.16 per barrel, as it seems to be falling towards the bottom of a wave b around $75.12.
The correction from the Oct. 25 high of $85.41 may have ended. Oil is expected to rise towards $84.97, the peak of a wave B.
However, the rise from the Nov. 22 low of $74.76 adopted a corrective wave mode, which suggests a bumpy journey towards $84.97.
Only a break above $77.84 could signal the continuation of the uptrend. On the daily chart, a morning star remains valid. Sharp as it, the current drop may end around $76.46, the open price on Nov. 23.
A break below $76.35 could open the way towards $75.15. The bullish outlook will be revised once oil falls to $75.15.
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