TECHNICALS-US oil eyes $77.98; Middle East war to last a few weeks

SINGAPORE, March 4 (Reuters) - U.S. oil CLc1 may revisit its previous session's high of $77.98 per barrel, as suggested by its wave pattern and a projection analysis.

The contract is riding on wave 5, which is capable of travelling to the peak of the wave 3 at $77.98, or a much higher level.

The deep drop from $77.98 was labelled a wave 4, which seems to have ended. Support is at $74.46, a break below could trigger a drop into the $73.18 to $73.72 range.

On the daily chart, 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.

A double-bottom around the May 2025 low of $55.30 will be confirmed when the market climbs above $78.40. It suggests a target of $100.

Based on this bullish outlook, the Middle East war may last at least a few weeks.

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.