SINGAPORE: US oil may retreat moderately to $69.96 per barrel, before retesting a resistance at $71.28.

The contract is riding on a wave (5), which is expected to be roughly equal to the wave (1), to travel to about $73.57. Oil failed to break $71.28.

The failure may be followed by a shallow correction towards $69.96.

A break above $71.28 would open the way towards $72.70-$73.57 range. On the daily chart, oil is riding on a steady uptrend, which is extending towards $75, as indicated by a bullish triangle.

Wave pattern suggests the progress of a big wave C from $51.64, which may extend into a higher target zone of $79.68 to $84.47.

However, a pullback towards the triangle has not occurred yet. This pullback could be a hidden mine to explode around $71.93.

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