SINGAPORE: US oil may retest a support at $62.65, as it faces a strong resistance zone of $63.38-$63.88 per barrel.

The downtrend from $67.98 consists of three waves.

The contract is riding on a wave B from $52.75. This wave could be broken down into three smaller waves, with the wave (c) ending in the resistance zone.

A downward wave C may start in the zone, to reverse the wave B in due course.

A break above $63.88 could open the way towards $65.45.

On the daily chart, a retracement analysis reveals a similar resistance at $64.12. The small candlestick on Thursday indicates a reluctance of bulls to overcome this barrier.

Most likely, the contract would fall towards $61.74.

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