SINGAPORE: US oil may retest a resistance at $73.38 per barrel, a break above which could lead to a gain into $74.98-$76.59 range.

The fall from the Dec. 9 high of $73.34 has been almost reversed. The reversal signals an extension of the bounce from the Dec. 2 low of $62.43.

The bounce has adopted a zigzag mode. With the current wave unfolding further, the pattern may develop into a double-zigzag. An inverted head-and-shoulders suggests a target around $76.59, which has been resumed.

US oil may fall more; bounce from $62.43 over

Support is at $71.47, a break below which could cause a fall into $68.99-$69.80 range.

On the daily chart, oil is retesting a resistance at $73.13, a break above which could lead to a gain to $75.46.

Trending signals are turning bullish. However, a failure to break $73.13 could cool the bullish sentiment down a bit.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.