SINGAPORE: US oil may climb to $76.07 per barrel, before turning around and resuming its downtrend. The strong rise from the Monday-low of $72.25 suggests the completion of a wave c.
A trendline points at a target of $86.07. It must be noted that more than 76.4% of the uptrend from $70.08 has been reversed.
Chances are high that this low will be revisited.
The current bounce may extend a bit further, but it is expected to be brief.
US oil may fall into $71.53-$72.40 range
Indeed, the downtrend looks steady within a falling channel.
A break below $73.80 could open the way towards $72.40. On the daily chart, the bounce is closely related to the support of $71.76.
Given that this support has triggered two strong bounces in February 2022 and January 2023, it is unlikely to cause a similarly strong bounce.
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