SINGAPORE: US oil may test a support at $64.55 per barrel, a break below could cause a fall to the range of $62.54 to $63.58.
The bounce triggered by the support has been almost reversed. The reversal signals a continuation of the downtrend within a falling channel.
Around 86.4% of the uptrend from $61.74 has been reversed. Chances are this level could be revisited soon. Resistance is at $67.32, a break above which may lead to a gain to $69.03.
On the daily chart, oil has broken a support at $67.29 and a rising trendline. The break opened the way towards $56.36. The bounce on Wednesday could be regarded as a pullback towards the trendline.
Both this bounce and the one on Monday achieved little in reversing the downtrend. A temporary bottom may only form around $61.74 next week.
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