SINGAPORE: US oil looks neutral in a range of $78.57-$80.07 per barrel, and an escape could suggest a direction. The contract failed three times to break a resistance at $80.07. The failures suggest the formation of a small triple-top around this level.
The pattern will only be confirmed when oil breaks $78.57. A break above $80.07 may lead to a gain to $81.09. Such a gain will confirm a continuation of the uptrend towards $82.48. On the daily chart, the doji forming around a resistance at $80.62 represents a weakness of the rise.
US oil to test support of $78.57
Oil is expected to retrace to $77.24 first. A break below this level may be followed by a deep drop towards $71.76. A break above $80.62 may lead to a moderate gain to $83.48.
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