SINGAPORE: US oil may fall further into a range of $79.04-$80.89 per barrel, due to the completion of a wave (5). This wave started at $79.37, the April 11 low and the bottom of the wave (4).

The deep fall on Monday confirmed the completion of this wave.

The low of $79.37 serves as a target.

A common gap forming on April 3 suggests a much lower target of $75.70, as this gap is supposed to be covered.

Resistance is at $81.92, a break above which could lead to a gain into $82.45-$83.02 range.

US oil may retest support at $81.92

On the daily chart, the broad picture remains bearish.

The rise from $64.12 might have been driven by a wave (D), which is expected to be reversed by a wave (E) in due course.

Signals on the hourly chart suggest a drop below the support at $77.24.

The drop may be extended to $71.76, as indicated by a projection analysis.