SINGAPORE: US oil may test a resistance at $76.16 per barrel, a break above could lead to a gain into the $76.80-$77.34 range.

The contract stabilized around a support at $75.12, the 138.2% projection level of a wave C.

A bounce towards $76.80-$77.34 range may have been triggered, as the wave C has a zigzagging structure.

Increasing the chance of a bounce is the possible completion of the wave C around $75.12, which will be extend to $73.43 if the support at $75.12 fails to hold.

On the daily chart, a set of projection levels on the uptrend from $67.56 still work effectively on the current fall.

A double-top suggests a target of $71.96, which is subject to a confirmation, as it is not very clear how strong the bounce on Monday could be.

Where oil is going to close also remains unknown. A close above $77.63 would suggest a completion of the drop.

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