TECHNICALS-US oil to revisit June 23 high of $78.40

SINGAPORE, March 2 (Reuters) - U.S. oil CLc1 is expected to revisit its June 23 high of $78.40 per barrel due to a major breakout on Monday.

The contract has broken a long-term trendline falling from the March 2022 high of $124.23. The break signals a reversal of the downtrend from this level.

Around the May 2025 low of $55.30, a double-bottom has been developing, which will be confirmed when the market climbs above $78.40. It suggests a target of $100.

The contract seems to be experiencing a pullback toward the trendline. A retracement analysis on the downtrend from $78.40 to $54.90 reveals a support zone of $66.63 to $69.39, in which the pullback may end and the uptrend would resume.

On the five-minute chart, a wave c is driving the correction. This wave may either end around its 61.8% projection level of $70.39 or extend to the 100% projection level of $68.77.

A combination of the signals on both the daily and hourly chart suggests a extension of this wave toward $68.77. Immediate resistance is at $71.40, a break above may lead to a gain into the $72.02 to $73.02 range.

Such a gain would signal the continuation of the uptrend.

Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her professionals or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.