SINGAPORE: US oil may test a support at $75.79 per barrel, a break below which could open the way towards $74.44.

The deep drop on Tuesday confirmed a completion of the bounce from $70.08.

The bounce could be well broken down into five waves, a structure also suggests its completion.

Oil is expected to fall into the range of $74.44-$75.79. Before resuming its drop, it may bounce moderately to $78.10.

The bounce will be regarded as a pullback towards a rising trendlline.

An extension of the pullback may be limited to $78.80.

US oil poised to rise into $82.12-$82.81 range

On the daily chart, the fluctuation is still well controlled by a set of projection levels on the downtrend from $123.68.

Oil failed twice to break $80.62. The failures, along with the deep fall on Tuesday, strongly suggests a continuation of the downtrend.

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