SINGAPORE: US oil may rise to March 8 high of $67.98 per barrel, as suggested by a retracement analysis.

The analysis reveals that almost 86.4% of the fall from $67.98 has been reversed.

The current rise does not look like a part of the three-wave correction from this level. Instead, it could be a resumption of the preceding medium-term uptrend.

Based on the assumption that the current wave c would be equal to the wave a from $60.66, oil may rise to $67.72, close to $67.98.

Support is at $65.88, a break below which could cause a fall into $64.75-$65.45 range. On the daily chart, oil is retesting a strong resistance zone of $65.65-$66.60.

It would be a bit surprising that the contract breaks this zone without a shallow correction. However, market is always full of surprises.

Such a correction may develop on Wednesday, if it occurs.

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