SINGAPORE: US oil may revisit its Jan. 27 low of $79.04 per barrel as the uptrend from $72.46 may have reversed. The trend could be well broken down into five waves, with the wave five turning to be a failed fifth wave.
The pattern around $82.63 looks like a double-top, which will be confirmed when oil drops below $79.04.
The rise from $79.04 is classified as a pullback towards a rising trendline.
The pullback may end around $80.42.
A break above $80.84 could lead to a gain into $81.26-$81.79 range.
On the daily chart, the drop on Jan. 27 confirms an escape of the price from the neutral range of $80.62 to $86.11.
US oil may retest support of $79.68
The possible driver behind this drop is either the completion of a wave c or a pullback towards a falling trendline.
In either case, oil is likely to drop to $77.24.
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