SINGAPORE: US oil may rise to $72.39 per barrel, driven by a strong wave c.

The rise from the Dec. 2 low of $62.43 consists of three waves.

The third wave is unfolding. It is expected to travel to $72.39, as it has extended above its 61.8% projection level of $69.80.

An inverted head-and-shoulders has been confirmed, suggesting a target of $76.59. A fall from the current level will be classified as a pullback towards the neckline of the pattern.

Brent oil may end bounce around $82.03; drop incomplete

Support is at $68.99, a break below which could cause a fall into $67.20-$68.19 range. On the daily chart, the current rise is still considered as a pullback towards a rising trendline, which establishes a resistance around $71.20.

Given that oil has broken a resistance at $69.36, it is likely to extend gains into $71.69-$73.13 range.

A break above $73.13 would alter the nature of the rise, from a simple pullback to a continuation of the uptrend.

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