SINGAPORE: US oil may retest a support at $69.96 per barrel, with a good chance of breaking below this level and falling to $68.99.

The current drop followed the completion of a five-wave cycle from $61.56. The drop is expected to be as deep as the one from the May 18 high of $64.11.

Based on this assumption, oil could fall to $67.57, which is pointed by a rising channel. Resistance is at $71.28, a break above which could lead to a gain into $71.96-$72.70.

On the daily chart, the resistance at $71.93 triggered a pullback towards a triangle.

The pullback may extend to $67.14. Immediate target is $69.17.

The triangle suggests a target around $75, which is yet to be fulfilled.

The uptrend may resume upon the completion of the pullback.

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