The resistance is identified as the 100 percent projection level of an upward wave (c) from $64.02. The next resistance is at $73.46, a break above which could lead to a further gain to $74.20.
This wave has a better chance of extending into a much higher range of $75.41-$77.35, following the break above $72.26. Once it travels to the range of $73.46-$74.20, the target zone of $75.41-$77.35 could be more or less confirmed.
On the daily chart, oil seems to be able to break a strong resistance at $72.66, the 23.6 percent of the retracement on the uptrend from $27.10 to $86.74.
This is a milestone to bulls, as this resistance is strengthened by another one at $72.68, the 61.8 percent retracement of the downtrend from $86.74 to $49.93. The break will open the way towards $78.05.
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** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses. **