SINGAPORE: US oil may retest a resistance at $79.23 per barrel, a break above which could open the way towards $80.07-$80.45 range.

The nature of the rise on Wednesday remained unclear, looking like a continuation of the uptrend from $72.25, which is driven by a wave C.

A projection reveals the close relation of this wave to the preceding wave A from $72.25. Oil climbed above a narrow falling channel, which could be a part of a bullish flag that points at an aggressive target of $85.

Support is at $78.47, a break below which may be followed by a drop into $77.25-$77.84 range.

US oil may fall into $71.53-$72.40 range

On the daily chart, the three dojis since Feb. 13 may make a part of a rising three method, which precedes a strong rise.

This rise could be extended to $83.48, as indicated by the upper trendline of an expanding wedge. A break below $77.24 will confirm a target of $71.76.