SINGAPORE: US oil may retest a support at $75.47 per barrel, driven by a wave e. This is the fifth wave of a five-wave cycle from the Nov. 7 high of $93.74.
It is expected to travel far below $75.47.
A falling trendline points at a target of $69.89, which looks a bit unrealistic.
The nearest target is either $75.47 or $74.15. The pattern between Oct. 10 and Nov. 17 has been confirmed as a double-top, suggesting a target around $70.
The bounce triggered by the support at $75.47 has proved to be a pullback towards the neckline of the pattern.
Resistance is at $78.93, a break above which may lead to a gain into $79.74-$81.06 range.
On the daily chart, the support at $77.24 looks vulnerable under the intense attack of bears.
It won't be long before this barrier is overcome.
A close of the price below $77.24 could be the very early signal of a valid break.
A target zone of $62.89-$71.76 will be established then.