US oil may retest support at $69.72

SINGAPORE: US oil may retest a support at $69.72 per barrel, a break below which could cause a fall into $67.34-$68.66 range.

The downtrend from the July 6 high of $76.98 has continued. The trend is riding on a wave (c) from $74.23. This wave is expected to travel into a big range from $62.70 to $67.10.

In addition to the set of projection levels, the fall is controlled by a set of retracements on the rise from $65.21 to $74.23 as well.

Oil prices firm as US inventories decline

Resistance is at $70.78, a break above which could lead to a gain into $71.51-$72.10 range.

On the daily chart, a rising trendline points at a target zone from $66.44 to $67.59.

The black hammer appearing on Tuesday is not regarded as a bullish reversal pattern.

It is likely to be followed by another black candlestick, based on the current strong bearish momentum.

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