Technicals-US oil may revisit July 28 low of $77.78
XLE•U.S. oil may retest July 28 low
SINGAPORE, July 31 (Reuters) - U.S. oil CLc1 may revisit its July 28 low of $77.78 per barrel, as a bounce from this level has completed.
The bounce was driven by a wave b, the second wave of a three-wave cycle from $93.50. After failing twice to overcome a barrier at $85.73, this wave may have ended.
The downward wave c is unfolding toward $77.78. Resistance is at $83.85; a break above may lead to a gain into the $85.73-$87.60 range.
On the daily chart, a three black crows pattern formed between July 24 and July 28, confirming a reversal of the uptrend from $67.04 and overshadowed the bounce from $77.78.
The bounce seems to have lost its momentum around $86.41. A fall toward $79.04 will be highly likely.
