SINGAPORE: US oil may test a resistance at $81.08 per barrel, a break above could lead to a gain into $81.47-$82.10 range. The rise on Monday confirmed an extension of the uptrend from $74.09.
So far, the trend has been well controlled by a set of its own projection levels.
The resistance at $81.08 is supposed to be strong to stop the rise.
However, the current robust momentum makes this barrier vulnerable.
A failure to break $81.08 may be followed by a correction into $79.82-$80.45 range.
On the daily chart, oil has more or less broken a resistance at $80.62.
US oil may test support of $78.80
The break opened the way towards $83.48-$86.11 range, which is pointed by a rising channel.
The latest development of the chart suggests the formation of a bottom around $71.76 and a slow reversal of the downtrend.
Perhaps it is time to review the medium-term bearish outlook.
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