SINGAPORE: US oil may bounce more into a range of $75.49-$76.55 per barrel, as a five-wave cycle from $83.34 has completed.

The wave 4 ended around $75.49, which serves as a bounce target.

Strategically, this target will be confirmed when oil breaks $74.17.

Immediate support is at $73.26, a break below which may be followed by a shallow drop to $72.04.

The bounce may resume upon the completion of the this drop.

Oil jumps on supply risks, ongoing Keystone outage

On the daily chart, a projection analysis reveals a higher target of $77.24, as oil has stabilized around a support at $71.76.

The downtrend from $123.68 remains steady. It is expected to extend to $62.89.