US oil faces resistance zone of $76.83-$77.29

SINGAPORE: US oil faces a resistance zone of $76.83-$77.29 per barrel, a break above which could lead to a gain to $78.50.

The contract is riding on a wave C, which may extend to $77.29, its 161.8% projection level.

Another projection analysis suggests a target of $78.50, which will be available once oil rises above $77.29.

Support is at $76.14, a break below which could cause a fall into $74.99-$75.48.

The contract appears to be riding on a powerful wave III. Due to the complex structure of the uptrend from $61.56 to the June 16 high of $72.99, this wave count needs to be confirmed.

On the daily chart, the contract is expected to rise towards $78.47, which is close to $78.50 (hourly chart). Resistances at these two levels may work together to trigger a decent correction.

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