TECHNICALS-US oil still targets June 23 high of $78.40

SINGAPORE, March 3 (Reuters) - U.S. oil CLc1 still targets its June 23, 2025 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.

The drop from the previous session's high of $75.33 is classified as a pullback toward the trendline. The pullback may have ended around $69.39.

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.

On the hourly chart, the consolidation from $75.33 took the shape of a bullish triangle, which will be confirmed when the market breaks $72.58.

The pattern suggests a target of $75.34. However, it forms a part of a much bullish pennant with the preceding rise from $63.64. The latter indicates a target of $85.

The readings on the daily and hourly chart combine to market a wide target range of $75-$100.

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.