US oil may test support at $72.48

SINGAPORE: US oil may test a support at $72.48 per barrel, a break below which could cause a fall to $71.10.

The current fall does not look like a simple pullback towards a falling trendline, as it is too sharp and deep. Instead, it signals a reversal of the uptrend from $65.21.

The uptrend may resume, if oil stabilizes around $72.48 and rises towards $74.20. On the daily chart, the contract observes two sets of projection levels: one set on the uptrend form $57.25 and the other on the shorter uptrend form $61.56.

Oil consumption falling off the cliff

The nearest support is at $72.74, which looks vulnerable under the heavy attack by bears. A break could open the way towards $71.32 or a lower level of $70.37.

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