SINGAPORE: US oil may test a support of $69.85 per barrel, a break below which could open the way towards $67.48.
A triple-top forming around $73.71 suggests a target of $69.85, which is also suggested by a retracement analysis that reveals a break below the former support of $71.41.
A bounce from the current level may be limited to a resistance zone of $71.41-$71.93.
The current fall looks like a continuation of the downtrend from $83.44.
On the daily chart, oil failed to break a resistance at $71.76.
Oil prices slip 1%, US jobless data and debt-ceiling talks weigh
The failure confirms a completion of the bounce triggered by the support zone of $62.89-$64.42. Oil is expected to revisit this zone very soon.
The further the contract drops, the less likely a double-top around $64.42 is proved.
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