SINGAPORE: US oil may break a resistance at $73.34 per barrel, and rise into $73.87-$74.60 range.
The fall from $76.98 consists of three waves. The wave b ended around $74.73, which works as a target for the current bounce.
A moderate correction was triggered by the resistance at $73.34. The correction may end above a support at $72.23.
A retracement analysis could also be applied to the rise from $70.76.
The levels revealed might be too fine-tuned and so they make little sense.
A break below $72.23 would open the way towards $70.76-$71.67 range. On the daily chart, oil is riding on a wave 4, which is expected to be sideways, as the preceding wave 2 is sharp.
The wave 4 may develop in the range of $71.32 to $75.05 for a few days, to be then reversed by an upward wave 5.
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