SINGAPORE: US oil may rise into a range of $73.16 to $73.89 per barrel, as it has found a strong support at $70.10. The strong reaction of the market to the support suggests a completion of the drop from $75.06 and an extension of the uptrend from $67.03.

The trend has been driven by a wave C, which not only looks smaller than the wave “A”, but also has a much shorter duration.

The comparison suggests an incomplete wave C which may extend towards $75.06. Support is at $71.05, a break below could open the way towards $70.10.

On the daily chart, oil is sandwiched between $70.02 and $75.62.

A rising wedge is ending.

US oil may test support zone $72.18-$72.70

It is hard to decide the nature of the pattern before oil either rises above $75.62 or falls below $68.50.

A break below $70.02 could be the very early signal of a bearish wedge.