SINGAPORE: US oil may retrace moderately to $71.83 per barrel before retesting a resistance at $73.33. The strong gain on Wednesday confirmed the progress of a wave c from $69.41.

This wave is expected to travel into a wide range of $75.74 to $79.66.

Oil seems to have temporarily lost its momentum around a resistance at $73.33.

It could be experiencing a shallow correction which may end around $71.83.

US oil biased to revisit May 15 low of $69.41

A further drop to $70.91 would signal a swing of the bullish sentiment.

A target of $69.41 will be established accordingly. On the daily chart, the contract not only stabilised around a support of $70.02, but also rose high above this level.

Chances are it may test the resistance at $75.62. It might be the time to target $82.55, as the current rise looks like an extension of the uptrend from the May 4 low of $63.64.