SINGAPORE: US oil may bounce moderately to $81.92 per barrel, before falling again. The contract managed to stabilize around a support of $80.14 and pierce above a resistance at $80.89.
The first part of a correction from the April 12 high of $83.53 could have completed.
The next resistance will be at $81.92, around which, the bounce may end.
The drop over the past few days looks deep enough to confirm a reversal of the uptrend from the March 20 low of $64.12. Oil may at least cover a common gap forming on April 3.
Based on this interpretation, the current bounce may be brief and weak. A break above $81.92, which looks unlikely, may lead to a gain into $82.45-$83.02 range.
US oil may fall further into $79.04-$80.89 range
On the daily chart, the uptrend from $64.12 has been slowly reversing.
The trend might have been driven by a wave (D), which is expected to be reversed by a wave (E) in due course.
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