SINGAPORE: US oil may test a support at $72.70 per barrel, with a good chance of breaking below this level and falling towards $71.28-$71.96 range.
The deep fall on Tuesday suggests a reversal of the uptrend from $61.56.
The fall may last two or three days. Oil seems to have completed a weak pullback towards a short rising trendline. The drop has resumed.
A break above $73.57, which looks unlikely, may lead to a gain into $74.14-$74.99 range.
On the daily chart, oil broke a support at $74.42.
The break opened the way towards $70.37, which is pointed by a rising channel as well.
The current drop could be driven by a wave 4, which may end around $70.37, to be reversed by an upward wave 5.
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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