SINGAPORE: US oil is poised to break a resistance at $81 per barrel, and rise into a range of $82.12 to $82.81. The contract failed to overcome this barrier at its first attempt.
The subsequent correction seems to have prepared bulls with enough momentum to break $81 and rise more.
The uptrend has been developing in a rising channel, which suggests a target around $82.81.
Support is at $79.19, a break below could trigger a drop into $77.16-$78.07 range.
On the daily chart, a projection analysis on the downtrend from $123.68 reveals a similar resistance at $80.62, which looks vulnerable under the second attack by bulls.
The current speculation is that the bounce is against the short downtrend from $93.74.
A reversal of the bigger trend from $123.68 will only be considered when oil breaks $84.70.