SINGAPORE: US oil may break a resistance at $74.54 per barrel, and rise to $75.74. The contract failed to overcome this barrier at its first attempt, probably due to the occurrence of a pullback towards a bullish wedge.
Nevertheless, both the wedge and a wave count suggest a gain towards $75.74, or a higher $79.66, if the current wave c extends.
The bullish outlook has to be revised, if oil breaks $73.33 - the pivotal support to signal a completion of the wave c. On the daily chart, the contract is slowly but steadily climbing towards $75.62.
US oil may test resistance $74.54
There is no clue of a break above this resistance and a further gain towards $82.55, as the current rise seems too weak to overshoot the barrier.
Quite likely, oil may fail to clear this resistance and start a correction.
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