SINGAPORE: US oil may retest a resistance at $80.26 per barrel, a break above which could lead to a gain into $80.77-$81.39 range.
A retracement analysis reveals that about 86.4% of the fall from $81.50 has been reversed.
Chances are the high of $81.50 may be revisited soon. Oil is presumed to be riding on a wave c from $73.84, which may travel to $80.77.
This wave is a part of a bigger wave C from $72.46.
Another projection analysis suggests a higher target of $83.88. Support is at $79.13, a break below which could open the way towards $78.12.
On the daily chart, the current rise is classified as a part of the consolidation triggered by the support at $71.76, the 138.2% projection level of a wave (C) from $123.68.
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This wave is assumed to complete around $62.89. Based on this assumption, oil may retest the support at $71.76 in due course.
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