SINGAPORE: US oil may extend its gains into a range of $82.30-$83.20 per barrel, as it has escaped from a falling channel.
The target zone is suggested by a duplicated channel.
A retracement analysis on the fall from $93.74 to $73.60 reveals a higher target range of $83.67-$86.05, as oil is about to break the 38.2% level of $81.29.
Support is at $79.75, a break below which may trigger a fall into $77.62-$78.94 range.
On the daily chart, the current rise is tentatively classified as a bounce against the fall from the Nov. 7 high of $93.74.
Oil up more than $2 on tight supply
The bounce seems to be observing a set of projection levels on the fall from $123.68. It has briefly pierced above $80.62.
Chances are the bounce may extend into $83.48-$86.11 range.
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