SINGAPORE: US oil may test a support at $76.58 per barrel, with a good chance of breaking below this level and falling to $75.78. The bounce from the April 21 low of $76.72 was over.
The downtrend from $83.65 has resumed. Driven by a wave c, the trend could extend into a wide range of $72.37-$74.97.
A retracement analysis on the uptrend from $64.12 marks a target zone of $71.53-$73.83, which overlaps with the range of $72.37-$74.97.
Immediate resistance is at $77.57, a break above which could signal the extension of the wave b towards $78.19-$79.18 range.
US oil may test support at $78.14
On the daily chart, oil is about to break a support at $77.24 and fall towards $71.76.
Riding on a wave (E), the contract may eventually drop to $62.89 or a much lower level.
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