U.S. oil may fall further into $79.08-$79.86 range
USO•U.S. oil technical outlook
SINGAPORE, July 28 (Reuters) - U.S. oil CLc1 may fall further into a range of $79.08-$79.86 per barrel, driven by a wave c.
The current fall is extending within a narrow channel, which suggests a target zone of $79.08-$79.86, formed by the 200% and the 186.4% projection levels of the wave c.
A retracement analysis on the uptrend from $67.24 reveals a target of $80.39, close to $79.86. Immediate resistance is at $81.96, a break above which may trigger a gain into $82.64-$83.48 range.
On the daily chart, the market is expected to test the support at $79.04, as it has broken the upper support at $86.41. A break below $79.04 could be followed by a drop into $70.66-$74.50 range.
The nature of the current fall remains unknown. Considering that the contract failed to break the 50% retracement of $92.37 and a falling trendline, the fall may turn out to be a continuation of the downtrend from $117.61.
