SINGAPORE: US oil may test a support at $78.14 per barrel, a break below which could open the way towards $76.15-$77.25 range.

A small five-wave cycle from $83.53 has completed at the April 24 low of $76.72.

The cycle is considered as the first part of a zigzag.

The current bounce is expected to be non-linear, to be disrupted by a drop, which may have been triggered by the resistance at $79.04.

A break above this resistance may lead to a gain to $80.14. On the daily chart, the gap forming on April 3 has only been partially covered.

US oil may fall into $76.15-$77.25 range

The contract is expected to resume its drop to fully fill this cap after the completion of the current bounce, as it is riding on a wave (D) which could travel to $62.89.