SINGAPORE: US oil may retest a support at $63.90 per barrel, a break below could cause a fall to $63.13.

The contract is riding on a wave c from $66.40. This wave looks incomplete, as it is too short, compared with the preceding wave a.

In terms of both length and duration, the wave c may extend more towards $63.13 - the ending point of the wave a.

A retracement analysis reveals a resistance at $65.15, a break above could lead to a gain into $65.63-$66.40 range.

On the daily chart, oil is expected to consolidate further below a resistance zone of $65.65-$66.60.

It could be too early to conclude that the uptrend has reversed, simply based on the consolidation.

The trend is driven by a wave C, which is supposed to travel to $71.93. This wave may resume upon the completion of the consolidation.

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