SINGAPORE: US oil may test a support zone of $72.18-$72.70 per barrel, a break below which could open the way towards $69.99.
The news-driven price jump on Monday may not be able to develop into a lasting rally, as the current rise expected to be limited to an ultimate target of $75.73.
The calculation of the target has been based on a rise from $69.99 and the preceding quick gain from $67.52.
Instead of fulfilling this final target of $75.73, oil may have indeed ended its rise around $74.90.
Resistance is fixed at $74.06, a break above which could lead to a gain into $74.90-$75.73 range.
US oil may extend loss into $67.48-$68.37 range
On the daily chart, oil lost its momentum around a resistance at $75.62.
Chances are it may retrace to $70.02. Once the contract drops to this level, it will be unlikely to resume its rise towards $75.62.
The final thrust of the price on Monday marks the completion of the bounce from $63.64.
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