SINGAPORE: US oil looks neutral in a range of $80.81-$81.76 per barrel and an escape could suggest a direction. The rise from the Jan. 25-low of $79.45 looks a bit stronger than expected. It could be due to the continuation of the uptrend from $72.46.
However, many signals contradicting are this wave count. The rise adopted a corrective wave mode while the preceding fall from $82.64 an impulsive mode.
The uptrend from $72.46 could be well broken down into five waves as well. These structures do not support an extension of the uptrend above $82.64. Instead, they suggest a return to $79.68.
Oil up 1pc on positive US data
A break above $81.76 could lead to a gain into the $82.64-$83.88 range, while a break below $80.81 could open the way towards $79.68.
On the daily chart, the consolidation within a range of $80.62-$83.48 goes on.
Trending signals will become clearer when oil gets out of the range.
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