US oil may retest resistance at $69.30

SINGAPORE: US oil may retest a resistance at $69.30 per barrel, a break above which could lead to a gain into a range of $70.15-$70.77.

The contract could be riding on a wave (d), the fourth wave of a presumed wedge developing from the July 6 high of $76.98. Three smaller waves make up this wave.

The current wave c is expected to travel to $70.39. The shallow correction triggered by the resistance at $69.30 may be limited to $67.83, as suggested by a rising trendline.

A break below $67.83 could open the way toward $66.92. On the daily chart, the uptrend from the March 23 low of $57.25 temporarily remains steady.

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A reversal of the trend will be confirmed, when oil breaks $66.44.

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