US oil may retest support at $69.96
- The pullback may extend to $67.14. Immediate target is $69.17.
SINGAPORE: US oil may retest a support at $69.96 per barrel, with a good chance of breaking below this level and falling to $68.99.
The current drop followed the completion of a five-wave cycle from $61.56. The drop is expected to be as deep as the one from the May 18 high of $64.11.
Based on this assumption, oil could fall to $67.57, which is pointed by a rising channel. Resistance is at $71.28, a break above which could lead to a gain into $71.96-$72.70.
On the daily chart, the resistance at $71.93 triggered a pullback towards a triangle.
The pullback may extend to $67.14. Immediate target is $69.17.
The triangle suggests a target around $75, which is yet to be fulfilled.
The uptrend may resume upon the completion of the pullback.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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