SINGAPORE: US oil may retest a support of $76.43 per barrel, a break below which could open the way towards $74.93. The deep drop from $78.84 confirmed a completion of a zigzag from $72.25.

The downtrend from $82.48 may have resumed.

It is riding on a wave C which could travel into a range of $68.61-$72.52 range.

Even if this wave count proves to be incorrect later, oil is likely to fall to $74.75, the bottom of a wave b.

US oil may climb to $76.07 before falling

Resistance is at $78.57, a break above which could lead to a gain to $80.07. On the daily chart, the break above a resistance at $77.24 looks doubtful after the appearance of a hanging man on Thursday.

This bearish candlestick could be explained with an ongoing pullback towards $77.24.

It could also be interpreted as a reversal pattern, confirming a completion of the bounce from the Feb. 6 low of $72.25.

When the bearish signals on the hourly chart are taken into consideration, the pullback scenario simply looks pointless.