SINGAPORE: US oil may retest a resistance at $76.55 per barrel, a break above which could lead to a gain to $77.62. The current bounce shows no sign of completion.
The part of this bounce from $72.78 consists of five mini waves.
The wave 5 is yet to unfold towards $76.55-$77.62 range. Support is at $74.17, a break below which could be followed by a drop towards $72.04-$73.26 range.
Such a drop would confirm the continuation of the downtrend from $83.34.
The trend is riding on a wave C which is expected to travel to $63.20.
On the daily chart, oil is heading towards $77.24.
Oil slips as US crude stock build stirs doubts on demand
However, the downtrend from $123.68 remains steady.
It is expected to extend to $62.89, close to $63.20 (hourly chart), as suggested by a projection analysis.
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