SINGAPORE: US oil may retest support at $76.07 per barrel, a break below which could open the way towards $74.87-$75.20 range. The deep drop on Wednesday confirms a wave c, which may end around $76.07 or extend to $73.80.

A rising trendline suggests an extension of this wave towards $74.87.

Once oil falls to this level, it is likely to extend loss to $73.80.

Resistance zone is from $77.46 to $77.84, which may work as a limit to a further bounce from the current level.

On the daily chart, oil broke a support of $77.24.

US oil may test resistance at $79.67

The break not only opened the way to $71.76, but also suggested a continuation of a wave (C) from $123.68, towards $62.89.

The big black candlestick on Wednesday strongly indicates a further fall on Thursday.