SINGAPORE: US oil may test a support at $74.98 per barrel, a break below which could cause a fall into the $72.87 to $73.99 range.

The contract faces a strong resistance at $76.95, the 100% projection level of an upward wave (c). This resistance is strengthened by another one at $76.59, the 161.8% projection level of an uptrend from $65.60.

The wave (c) may either end around $76.95 or extend a lot to $81.12.

The sudden fall from the Wednesday high of $77.37 suggests a dissipation of the bullish momentum. A decent correction is due.

A rise above $77.37 may open the way towards $78.54. On the daily chart, the doji on Tuesday and the spinning top on Wednesday are bearish.

They indicate a possible reversal of the uptrend.

A surge above $77.37 may indicate the extension of the uptrend towards $79.23.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.