SINGAPORE: US oil may break a support at $69.80 and fall into a range of $67.20 to $68.99 per barrel, as suggested by a double-top.
The pattern has been confirmed, indicating a target around $67.20.
The moderate bounce triggered by the support at $69.80 is regarded as a pullback towards the neckline which is around $70.79.
The pullback could have completed. A break above $70.79, which looks unlikely, could lead to a gain into the $71.47 to $72.39 range.
US oil neutral in $70.79-$72.39 range, with downside bias
On the daily chart, the pullback towards a rising trendline has completed, following the repeated failures of oil to break a resistance at $73.13.
The downtrend may have resumed towards the Dec. 2 low of $62.43. A realistic target is $67.03, near $67.20 (hourly chart).
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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