US oil may retrace into $82.06-$82.48 range
XLE•Technical outlook for U.S. oil
SINGAPORE, Aug 28 (Reuters) - U.S. oil CLc1 may retrace into a range of $82.06-$82.48 per barrel, as a bounce from $79.62 seems to have completed.
The bounce adopted a typical zigzag pattern, consisting of three small waves, with the wave c roughly equal to the wave a, suggesting that the zigzag was over.
A break above $83.80 may lead to a gain into the $84.29-$84.82 range. On the daily chart, a rising trendline points at a target of $78.17, which remains intact.
As long as the market remains below the resistance at $84.41, the bearish outlook will remain unchanged. However, it must be noted that a resumption of the downtrend from $93.50 will only be confirmed when the contract breaks $80.55.
