U.S. oil may fall into $100.66-$101.59 range
USO•Technical outlook for U.S. oil
SINGAPORE, Sept 14 (Reuters) - U.S. oil CLc1 may fall into a range of $100.66-$101.59 per barrel to fill a common gap.
The sudden price jump on Monday seems to be driven by a wave b, the second wave of a three-wave correction from $104.46.
This wave is expected to end below $104.46, to be totally or partially reversed by the downward wave c. A break above $103.74 may lead to a gain into the $104.59-$105.97 range. Such a gain would signal the continuation of the uptrend.
On the daily chart, a dark cloud cover formed between Sept. 10 and Sept. 11, serving as a bearish reversal signal, indicating a drop on Monday.
The drop will be classified as a correction against the uptrend from $74.30, which looks intact and may resume, upon the completion of the correction.
