TECHNICALS-US oil targets $79.88 as upside opens toward $100

SINGAPORE, March 5 (Reuters) - U.S. oil CLc1 is poised to break resistance at $77.81 per barrel and rise toward $79.88.

Bulls are launching the third attack after failing twice to overcome this barrier. They are highly likely to succeed and push the price toward $79.88, which is suggested by a bullish triangle.

Together with the preceding rise from $70.09, the triangle forms a more bullish pennant, which indicates a higher target of $82.

Support is at $75.74, a break below which may trigger a droop into $73.72-$74.46 range. On the daily chart, the contract has broken a long-term trendline falling from $130.51. The break, along with the following strong surge, signals a reversal of the downtrend from this level.

A runaway gap forming on March has never been covered, which symbolises the strong bullish momentum and sentiment. A double-bottom around the May 2025 low of $55.30 has almost been confirmed, indicating a target of $100. A realistic target is $83.92, the 38.2% retracement on the fall from $130.51.

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.