SINGAPORE: US oil may revisit its Monday low of $79 per barrel as the consolidation that started from previous session’s high of $81.69 looks incomplete.

The correction may consist of three waves. The current wave b is expected to end around a resistance zone of $80.62 to $80.94. The third wave, the wave c, could start thereafter to reverse the wave b.

A break above $80.94 may lead to a gain into $81.92-$83.02 range.

Until oil breaks $81.92, it is still likely to fall towards $79.04.

On the daily chart, oil faces a resistance at $80.62, which is working together with the zone of $80.62 to $80.94 to stop the rise.

The spinning top on Monday symbolizes a hesitation of the market.

A further consolidation around $80.62 is likely.

US oil may test support at $79.04

The consolidation could be kind of counterpart of the sideways move that had spanned more than two months from Jan. 5 to March 14.