SINGAPORE: US oil may break a resistance at $71.85 per barrel and rise towards the next resistance at $73.35. The rise on Monday looks so strong that it suggests a completion of the fall from the May 10 high of $73.89, or the first part of this fall.
The uptrend from $63.64 may have resumed as well.
To confirm the resumption, oil has to break above $73.35.
So far, the rise closely observes the set of projection levels on the presumed wave c from $69.43.
Immediate support is at $70.93, a break below which could open the way towards $69.43-$70.15 range.
US oil may test support of $68.85
On the daily chart, the contract managed to stabilize around a support of $70.02. A consolidation above this level is highly likely.
The consolidation may not necessarily end up with a gain to $75.62.
But such a possibility does exist.
The best bet is that oil may slowly climb towards $75.62.
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