SINGAPORE: US oil may test a support at $69.22 per barrel, a break below which could open the way towards $67.27-$68.09 range. The bounce from $64.12 observes two sets of retracements, respectively on the trend from $80.94 and the trend from $77.47.
Oil failed to break a narrow resistance zone of $70.55-$70.80.
The failure suggests a completion of the bounce from $64.12. Working together with the zone is a resistance established by a falling trendline.
These resistances make a bearish reversal more likely.
A break above $70.80 could lead to a gain to $72.37.
US oil may test resistance at $69.84
On the daily chart, oil faces a resistance at $71.76, around which a correction may have started, after three days of consecutive gains.
The gain is classified as a bounce against the downtrend from the March 7 high of $80.94. The bigger trend from $123.68 remains firm.
It may extend to $57-$62.89 range, as suggested by a flag and a projection analysis on a wave C from $123.68.
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