The range is formed by the 100% projection level of an upward wave c and the 7% retracement of the uptrend from $49.93 to $75.60.

The rise from the May 13 low of $69.72 looks like more a retracement of the fall from $75.60, than a continuation of the uptrend from $49.93. This rise was due to a support at $69.54. It may fail to extend above a strong resistance at $73.80.

Based on the current wave count, the wave c has an ultimate target at $73.51. Both the retracement and projection analysis suggest the bounce from $69.72 is ending.

On the daily chart, oil faces a resistance range of $73.02-$72.66, formed by the 7% projection level of a downward wave  (C) from $75.60 and the 23.6 percent retracement of the uptrend from $27.10 to $86.74. This resistance range also makes a further gain less likely.

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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. **