SINGAPORE: US oil may fall into a range of $69.96-$70.60 per barrel, following its failure to break a resistance at $72.70.

The failure, along with the depth of the fall from the June 16 high of $72.99, suggests the completion of a wave (5), which was expected to travel to about $73.57.

It is not very clear how deep the correction will be. Most likely it is extending towards $68.99, near the bottom of a wave (4).

A break above $71.96 may lead to a gain to $72.70. On the daily chart, there is a false break above a resistance at $71.93. A pullback towards a triangle could have started.

This pullback is expected to extend into a support range from $67.14 to $69.17.

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