SINGAPORE: US oil may break a support at $68.93 per barrel, and fall into $67.03-$68.12 range. The bounce from the June 8 low of $69.03 has been almost reversed.
The reversal confirms a continuation of the downtrend from $75.06.
A short trendline points at a target of $68.12. A drop to such a low will leave bulls little chance to push the price above $71.99.
Resistance is at $70.10, a break above could lead to a gain into $71.05-$71.99 range. On the daily chart, oil fell below a support at $70.02.
US oil may retest resistance at $73.16
The contract has a better chance of falling further below a rising wedge, which looks like a bearish continuation pattern.
A close below the June 8 low of $69.03 on Monday could be the very early confirmation of the bearish wedge.
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